Release: 5601-09
For Release: January 16, 2009

CFTC and FinCEN Agree to Share Information

Washington, D.C. – The Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) (collectively, the Agencies) today announced that they have entered into an agreement for the exchange of information in an effort to coordinate efforts and maximize resources in discharging the Agencies’ statutory obligations under the Commodity Exchange Act (CEA) and Bank Secrecy Act (BSA). The collective goal of the Agencies is to ensure that CFTC-regulated entities, particularly futures commission merchants and introducing brokers, have in place anti-money laundering programs that comply with the BSA and its implementing regulations. The Agencies’ goal additionally is to ensure that terrorist financing, money laundering, and other financial crimes – including violations of the CEA – are identified, deterred, and interdicted.

Under the agreement, the CFTC will provide FinCEN information respecting the anti-money laundering examination and enforcement activities of the CFTC and the futures industry self-regulatory organizations that examine their members for BSA compliance. FinCEN will provide the CFTC with information that will assist the CFTC in carrying out its BSA compliance activities, enforcement activities, and oversight responsibilities with respect to entities subject to the CFTC’s jurisdiction.

CFTC Acting Chairman Walter Lukken commented: “This information sharing agreement will enhance the CFTC’s ability to effectively implement its anti-money laundering examination responsibilities, conduct oversight of the futures self-regulatory organizations, and meet its enforcement mission of rooting out fraud, manipulation, and wrongdoing in the futures markets. I want to thank FinCEN and CFTC staff for working tirelessly to finalize this cooperative arrangement for the benefit of the public.”

“This agreement further strengthens FinCEN’s and the federal government’s efforts to promote the safety and soundness of financial institutions while making sure the private sector upholds its responsibilities under the BSA, including providing law enforcement with the information necessary to hold accountable those responsible for money laundering, terrorist financing and other financial crimes,” said FinCEN Director James H. Freis, Jr. “When FinCEN, the CFTC and other financial regulators work together with the financial industry to protect against criminal abuse, we can enhance market integrity and promote legitimate financial activity.”

The CFTC is an independent regulatory agency responsible for administering the Commodity Exchange Act and the regulations promulgated thereunder. Its mission is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and option markets. The CFTC additionally has been delegated authority from FinCEN to examine CFTC-regulated entities for compliance with the BSA. The CFTC exercises this authority through oversight of the self-regulatory organizations in the futures industry that have established rules requiring their members to implement anti-money laundering programs to comply with the BSA.

FinCEN’s mission is to enhance U.S. national security, deter and detect criminal activity, and safeguard financial systems from abuse by promoting transparency in the U.S. and international financial systems. As part of its regulatory function in administering the BSA, FinCEN requires financial institutions across a broad range of industry sectors to implement anti-money laundering programs, as well as recordkeeping and reporting obligations.

FinCEN contact:

Bill Grassano
(703) 905-3770
Office of Public Affairs
Financial Crimes Enforcement Network
U.S. Dept. of the Treasury

Media Contact
R. David Gary
202-418-5085

Last Updated: January 16, 2009