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CFTC Whistleblower Programme combats illegal forex activities

Redwan Eid | May. 7, 2019
CFTC Whistleblower Programme combats illegal forex activities

May 7, 2019 | AtoZ Markets - The US Commodities Futures Trading Commission (CFTC) has rewarded an anonymous person with $1.5 million bounty for providing it with information against illegal forex activities.

Through its Whistleblower Program, the CFTC gives informants between 10 to 30% of the money it recovers from enforcement actions. The information should lead to a successful enforcement action, while the CFTC guarantees protecting the whistleblower’s ID from disclosure.

“The Commission is committed to protecting whistleblowers' identities. As a general rule, the Commission treats information learned during the course of an investigation, including the identity of sources, as non-public and confidential. There are, however, limits on the Commission's ability to shield your identity. The Commission will not disclose information that could reasonably identify a whistleblower without consent of the whistleblower”, the regulator undertakes on its website.

The bounty is the seventh of its kind the regulator granted to an informant since it began its anti-fraud programme five years ago.

On his turn, the head of the CFTC’s division of enforcement commented saying: “Today’s award illustrates two key aspects of our Whistleblower Program — that an individual doesn’t have to be an insider to receive a whistleblower award and the Commission can pay awards based on related actions brought by other regulators. I expect more awards to be issued to whistleblowers who provide our Enforcement Division with information based on their expert analysis of market data and to whistleblowers based on related actions.”

Other regulators have similar whistleblower programmes

Depending on informants to reveal illegal forex and financial trading activities have been widely adopted as an ancillary means by regulatory bodies like the CFTC and the SEC.

Both of the latter have their own incentivizing propgrammes to encourage individuals to disclose any information that may help the regulators combat illegal activities, promising to give a whistleblower between 10 to 30 per cent of a successful enforcement action of $1 million ore more.

It is worth mentioning that the U.S congress had faced wide opposition about the legislation when it passed it 7 years ago, as firms argued that the matter would hurt their compliance policies and push their staffs to only report misconducts based on the availability of financial incentives.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.