The Commodity Futures Trading Commission (CFTC) today issued an order simultaneously filing and settling charges with Canadian Imperial Bank of Commerce (CIBC), a swap dealer, for failing to maintain and preserve records that were required to be kept under CFTC recordkeeping requirements and failing to diligently supervise matters related to its business as a CFTC registrant.
The order imposes a $30 million civil monetary penalty; orders CIBC to cease and desist from further violations of recordkeeping and supervision requirements; and orders CIBC to engage in specific remedial undertakings. CIBC also admits the facts detailed in the order.
The order finds that from at least Sept. 2018 to the present, CIBC failed to stop employees, including those at senior levels, from communicating using unapproved communication methods, including messages sent via personal text. CIBC was required to keep certain of these written communications because they related to the firm’s CFTC-registered business.
These written communications generally were not maintained and preserved by CIBC, and CIBC generally would not have been able to provide them promptly to the CFTC if and when requested.
The order further finds the use of unapproved communication methods violated CIBC’s internal policies and procedures, which generally prohibited such communications.
Further, some of the same supervisory personnel responsible for ensuring compliance with CIBC’s policies and procedures also used non-approved methods of communication to engage in business-related communications, in violation of firm policy
The order recognizes CIBC’s cooperation with the Division of Enforcement’s investigation.
Since Dec. 2021, the CFTC has imposed $1.237 billion in civil monetary penalties on 27 financial institutions for their use of unapproved methods of communication, in violation of CFTC recordkeeping and supervision requirements.
