CFTC awards $200 million to whistleblower

CFTC awards $200 million to whistleblower

The Commodity Futures Trading Commission has awarded nearly $200 million to a whistleblower, bringing the running total to $300 million. 

According to the order, the whistleblower’s information led the CFTC to “important, direct evidence of wrongdoing.” To qualify for an award, a whistleblower must demonstrate that there is a “meaningful nexus” between the information provided and the CFTC’s ability to successfully complete its investigation. 

The CFTC launched its Whistleblower Program in 2010 and since the first award in 2014, the CFTC has awarded more than $300 million to whistleblowers. The total monetary sanctions from enforcement actions with associated whistleblower awards are now more than $3 billion. 

The CFTC had announced earlier this year that it was looking for further funding for its whistleblower program. In July, Congress passed S.409 in July 2021 to fund the program through October 2022.  

The commission’s successful use of whistleblowers and investment in the program’s future should serve as a reminder of the importance of being on top of this area. It may be timely to brush through your firm’s compliance manual and whistleblower policies and procedures. And it’s always worth remembering that your employees are vital to the health of your organization. Listen when they offer feedback, especially if it might uncover potentially unscrupulous practices. 

Bovill can help 

Bovill’s US team had a plethora of experiences with CFTC NFA related matters and can help you develop or enhance any procedures and policies relating to whistleblowing. 

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