27 July, AtoZForex – The Commodity Futures Trading Commission (CFTC) has announced another award whistleblower award. This time, the CFTC awards a whistleblower $50,000, for providing the regulator insightful information over an investigation. The whistleblower received such a large amount, due to the fact that the provided tips and information have enabled the US regulator to take successful enforcement action against the wrongdoer.
Remarkably, in the last 10 months, the CFTC has successfully solved several cases with the help of whistleblowers’ information. Hence, in this short time period, the recent reward of $50,000 has been already the third occasion.
Why is CFTC’s Whistleblower Program so important?
The CFTC’s Whistleblower Program was established by Dodd-Frank Act of 2010. The program gives monetary incentives to individuals, who voluntarily inform insightful information about firms that have violated the CEA, which lead to successful enforcement actions. Furthermore, the CFTC also awards whistleblowers whose information has helped other governmental entities to solve investigations that lead to successful enforcement action.
Whenever a case is successful, the whistleblower is entitled to 10% – 30% of the monetary sanctions collected. These individuals will receive money from the CFTC Customer Protection Fund, which was established by the Congress. How is this fund financed? Well, the CFTC Customer Protection Fund is financed through the monetary sanctions paid to the CFTC by offenders.
Protection of the whistleblower’s identity
Moreover, the identity of whistleblowers is disclosed and kept confidential by the CFTC according to the law. Also, based on the Dodd-Frank Act, employers may not take a revenge against whistleblowers for reporting breaches of the CEA to the CFTC. According to Christopher Ehrman, the Director of the CFTC’s Whistleblower Office:
“Whistleblowers continue to be an important weapon in the CFTC’s arsenal, and we are dedicated to rewarding valuable information and cooperation.”
The previous award to a whistleblower made by the CFTC was in April 2016 and for the moment is the largest ever awarded. If you want to know more about the CFTC’s Whistleblower Program and to explore how to apply for an award, visit the program’s website at whistleblower.gov.
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