On March 6, the Commodity Futures Trading Commission’s Division of Enforcement issued an Enforcement Advisory regarding self-reporting and cooperation for violations of the Commodity Exchange Act (CEA) involving foreign corrupt practices. Providing further guidance regarding the Enforcement Division’s cooperation and self-reporting program, the Advisory notes that the Enforcement Division will apply a presumption that it will recommend to the CFTC a resolution with no civil monetary penalty, absent aggravating circumstances, in the event of a timely and voluntary disclosure of violations of the CEA involving foreign corrupt practices. In evaluating potentially aggravating circumstances, the Enforcement Division will consider a variety of factors, including, but not limited to, the pervasiveness of the conduct. Even if the Enforcement Division does not recommend a civil penalty pursuant to the Advisory, the Advisory notes that the Enforcement Division would still require the disgorgement, forfeiture and/or payment of restitution resulting from such misconduct.
A copy of the Advisory is available here.