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Financial Services Law Insights and Observations

CFTC orders respondent to pay $6.5 million for CEA violations

Securities Financial Crimes CFTC Enforcement Commodity Exchange Act Bank Secrecy Act Anti-Money Laundering


On December 20, the CFTC announced a settlement with a registered futures commission merchant (respondent) for allegedly violating the Commodity Exchange Act, Commission regulations, and Bank Secrecy Act compliance requirements. According to the CFTC, the respondent allegedly “failed to implement an adequate anti-money laundering [] program, particularly as applied to a futures and options trading account controlled by [a customer],” and “failed to implement risk-based limits concerning trading by [a customer].” The CFTC also alleged supervisory and recordkeeping failures stemming from the inadequate anti-money laundering program. The respondent is ordered to pay a $6.5 million civil money penalty and undertake certain remedial measures relating to the violations.