- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-12-06T19:00:00
A commissioner at the Commodity Futures Trading Commission (CFTC) said she expects the regulator to pursue more individual liability cases against chief compliance officers, in the aftermath of landmark charges laid against the former CCO at Binance.
“There will likely be more cases against CCOs in the future,” CFTC Commissioner Caroline Pham told Compliance Week. Of note, Pham worked in several compliance roles at Citi before being named to the commission.
Pham said the CFTC should reserve charging compliance officers for those who engage in “egregious conduct,” like that found in the case of former Binance CCO Samuel Lim. The CFTC alleged Lim was “willfully aiding and abetting Binance’s numerous violations” of the Commodity Exchange Act in fining him $1.5 million.
The case marked the first time the CFTC charged a CCO with individual liability.
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Caroline Pham, a commissioner on the Commodity Futures Trading Commission, criticized the agency’s policy on credit for self-reporting violations as a “bait-and-switch.”
Caroline Pham, a commissioner at the Commodity Futures Trading Commission, said compliance officers have a lot to worry about if they or their firms are subject to CFTC enforcement during her fireside chat at CW’s Financial Crimes Summit.
Despite significant issues outside the control of most chief compliance officers, some regulators have signaled more individual liability cases are to be expected. Will accepting the wrong job, in hindsight, make it your last?
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French defense and aviation contractor Thales Group is under investigation by authorities in the U.K. and France for allegedly participating in bribery and corruption.
Hedge fund manager Scott Bessent, named by Donald Trump on Friday as his nominee for Treasury Secretary, has a clear mandate to deregulate the financial markets should he take the helm.
