The Commodities Futures Trading Commission (CFTC) Whistleblower Office has issued an alert to the public regarding how people can make themselves eligible for financial awards and protections while helping to stop violators of the Bank Secrecy Act (BSA).
The CFTC Whistleblower Program will pay 10%-30% of monetary rewards to eligible persons who provide original information about violations, if that information leads to a successful action that results in over $1 million in monetary sanctions. The CFTC Whistleblower program has been successful and millions have been awarded.
Commodities Futures Trading Commission (CFTC) And Bank Secrecy Act (BSA)
The CFTC is the regulator “charged with ensuring the integrity of the futures & swap markets”. The Bank Secrecy Act (BSA) is a U.S. law requiring financial institutions to help the government in finding and preventing money laundering.
The Bank Secrecy Act (BSA) has regulations under the Financial Crimes Enforcement Network (FinCEN) that require Futures Commission Merchants (FCMs) and Introducing Brokers (IBs) to:
- Have an anti-money laundering program 2. Have a customer identification program 3. File suspicious activity reports (SARs) 4. File currency transaction reports (CTRs)
Types Of Misconduct To Look For
The CFTC whistleblower alert lists the following concerns that the public should be on the lookout for:
- Improper supervision and records violations
- Failure to diligently supervise officers’, employees’, and agents’ opening and handling of accounts
- Failure to protect customers and the markets from fraud and corruption
- Improper enforcement of trading limits assigned by regulators
- Inadequate construction of a customer identification program as part of the firm’s compliance program
- Failure to file suspicious activity reports
Collecting CFTC Whistleblower Rewards
If you see conduct you believe is suspicious, you can complete a Form (TCR) Tip, Complaint, Referral that includes as much information and supporting materials as possible.
Individuals may file a whistleblower claim on their own, but many prefer to do so with the help of an experienced law firm that can guide them through the process and give them the best odds of collecting an award.
Silver Law Group represents whistleblowers in securities commodities and investment fraud cases reported to the CFTC and the SEC. Our lawyers are admitted to practice in New York and Florida and represent investment fraud whistleblowers nationwide. These cases handled on a contingent fee basis. Call us toll free at 800-975-4345, or use our online contact form to get in touch.