US Treasury to review AML rules
The US Treasury has announced that it will carry out a review of anti-money laundering (AML) rules in the US system in order to correct gaps, redunancies or inefficiencies within the system. It is widely expected that the US authorities will take a stricter approach to firms that breach AML rules in the future. David Cohen, Treasury Under Secretary for Terrorism and Financial Intelligence, said that the review would be carried out by a Treasury task force working along side federal regulators and law enforcement agencies. Mr Cohen said that the task force aimed to 'look under the hood and take stock of which components of our AML regime are working well, which are not, how the different parts are working together, and to assess how the entire enterprise is operating'.
CFTC charges trader with fraud and concealing trades from employers
The Commodity Futures Trading Commission (CFTC) has filed an enforcement action charging Matthew Marshall Taylor with defrauding his employer by hiding the true size and potential profits and losses associated with S&P 500 e-mini futures contracts position in a firm traded by him. The CFTC's complaint alleges that Taylor entered false trades into the firm's manual trade entry system thereby concealing and misrepresenting the size of his position. Taylor is then alleged to have covered his tracks by providing false information relating to his trading to his employers. On or about 13 December 2007, the CFTC alleges that Taylor's trading amounted to approximately $8.3 billion worth of long e-mini futures positions, together with the associated risks and profits and losses. The CFTC's complaint states that Taylor's trading caused his firm to incur losses, after the liquidation of his position, of $118,440,000. The CFTC is seeking monetary penalties, trading and registration bans as well as a permanent injunction preventing future federal commodities laws violations