Increased Scrutiny of Futures Industry Creates Rise in Money Laundering Penalties

By Brian Monroe

A crackdown by the futures industry's self-regulatory organization this year has resulted in a record number of enforcement actions against companies operating in the multi-trillion dollar risk-laden industry. The National Futures Association has cited or issued monetary penalties to 27 companies for compliance deficiencies including weaknesses in their AML programs this year, compared with two penalties in 2006. In five of the cases this year, AML was the only compliance deficiency. The enforcement actions follow several high-profile cases in which illicit money was moved through futures companies. In the past decade, authorities have arrested dozens of futures firm executives for...