August 20, 2019

August 20, 2019

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August 19, 2019

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CFTC Issues Advisory on Violations of the CEA Involving Foreign Corrupt Practices

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.

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About this Author

Kevin M. Foley, Finance Lawyer, Katten Llaw Firm
Partner

Kevin M. Foley has extensive experience in commodities law and advises a wide range of clients, both in the United States and abroad, on compliance with the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission (CFTC) affecting traditional exchange-traded products, as well as the over-the-counter markets involving swaps and other derivative instruments. His clients include futures commission merchants, derivatives clearing organizations, designated contract markets, foreign boards of trade and an industry trade association.

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312-902-5372
Stanley V. Polit, Katten Muchin, Financial Services lawyer, Corporate Regulatory Matters Attorney
Associate

Stanley Polit concentrates his practice in transactional, corporate and regulatory aspects of financial services matters. Stan is able to provide legal services to a wide variety of clients including proprietary trading firms, hedge funds, broker-dealers, registered investment advisers, commodity trading advisers, financial institutions and general corporate clients.

Prior to joining Katten, Stan served as a council member for a national crisis management firm, where he specialized in crisis communication and merged media strategies. He has lectured extensively and conducted trainings related to these topics at numerous national and international conferences, including the National Communication Association's National Convention, the International Crisis and Risk Communication Conference and the Disaster Recovery Journal's World Business Continuity Conference.

312.902.5420