Bank Secrecy Act Violations

The Commodity Futures Trade Commission regulates a large part of the global financial markets. More specifically, the agency prevents large money laundering schemes and other illegal actions. Further, the agency offers bounties to those who expose Bank Secrecy Act violations. These bounties are large financial rewards and can be collected anonymously.

Bank Secrecy Act Violations
Preventing Money Laundering and Corruption

Violations of the Bank Secrecy Act Can Be The Basis of Large Bounty Actions

The Bank Secrecy Act requires Futures Commission Merchants (“FCMs”) and Introducing Brokers (“IBs”) to comply with several laws.  More specifically, the Act requires FCMs and IBs to maintain and implement a written anti-money laundering (AML) policy. Further, FCMs and IBs need a written customer identification program (“CIP”). Both types of professionals also should file suspicious activity reports (“SARs”) and currency transaction reports (“CTRs”). Violations of these requirements can be the basis of Bounty Actions.

Bounty Actions encourage individuals with original knowledge of Future Commission Merchants or Introducing Brokers violating the BSA to report the violations. Further, the Bounty Actions offer large potential rewards to individuals who report significant violations.

Specific Bank Secrecy Act Violations

The CFTC is seeking Bounty Actions involving several specific schemes and violations. More specifically, targeted violations include improper supervision and records violations. They also want violations related to failures to diligently supervise officers’, employees’, and agents’ opening and handling of accounts. The agency also wants help detecting other types of significant fraud and corruption in the markets.

Other BSA violations targeted include improper enforcement of trading limits assigned by regulators and inadequate CIPs. Additionally, the agency wants to know about FCMs and IBs who fail to properly file required SARs.

The CFTC Is Expanding Its Enforcement Efforts to Detect Corporate Compliance in Preventing Money Laundering

The CFTC is expanding its enforcement efforts into corporate failures to properly implement compliance programs. More specifically, through Bounty Actions the CFTC wants to regulate hard to detect illegal conduct.

More Information on CFTC Bounty Actions

For more information on CFTC Bounty Actions, please go to the following web pages: Anonymous CFTC Bounty Action Information and CFTC Whistleblower Law Information.