CIBC Fined $1.25 Million by CFTC for Delayed Swaps Reporting

The Commodity Futures Trading Commission (CFTC) has ordered Canadian Imperial Bank of Commerce (CIBC) to pay a $1.25 million fine for consistently failing to report swap transactions in a timely manner. The regulatory body announced the settlement on September 24, 2024, in Washington, DC.

According to the CFTC, CIBC violated the Commodity Exchange Act and CFTC regulations by repeatedly submitting late reports for various types of swap transaction data. The violations occurred from January 2017 to the present, affecting millions of required reports and thousands of swaps.

The order details that CIBC was late in reporting real-time data, primary economic terms, confirmations, snapshots, and valuation data for its swap transactions. These delays were found to be pervasive throughout the relevant period.

Ian McGinley, Director of the CFTC's Division of Enforcement, emphasized the importance of timely reporting in the swaps market. "Timely swaps reporting is a critical component of the swaps reporting regulatory regime, and it is essential to the overall effectiveness of the swaps reporting system," McGinley stated.

Despite the severity of the violations, the CFTC acknowledged CIBC's substantial cooperation during the investigation. The bank's remediation efforts, including hiring a consultant, conducting extensive historical analysis, and allocating significant resources to address the issue, were taken into account when determining the penalty.

As part of the settlement, CIBC has admitted to the facts outlined in the order and agreed to cease and desist from further violations of the CEA and CFTC regulations. The bank's cooperation and voluntary reporting of factual findings were cited as factors in the CFTC's decision-making process.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.