CFTC Issues Policy Statement on Referrals for Potential Criminal Enforcement

WASHINGTON, D.C.- The Commodity Futures Trading Commission approved a policy statement describing its plan to address criminally liable regulatory offenses in accordance with Executive Order 14294, Fighting Overcriminalization in Federal Regulations.

The policy statement advises the public that the Commission, in consultation with the Attorney General, will provide the Director of the Office of Management and Budget a report containing:

• A list of all criminal regulatory offenses enforceable by the Commission or the Department of Justice.
• For each such criminal regulatory offense, the range of potential criminal penalties for a violation and the applicable mens rea (state of mind) standardfor the criminal regulatory offense.

The policy statement sets the framework to be followed when CFTC, including the Division of Enforcement, considers whether to refer potential violations of criminal regulatory offenses to DOJ.

The policy statement is issued in accordance with the Executive Order and will be published in the Federal Register. Previously, because there was no majority vote of the Commission to authorize Federal Register publication, the Division of Enforcement issued an advisory which incorporated the framework adopted by the Commission. That advisory has now been withdrawn following this Commission action.