CFTC Commissioner Goldsmith Romero Re-Proposes Establishing National Fraud Registry

CFTC Commissioner Christy Goldsmith Romero re-proposed establishing a National Financial Fraud Registry and urged state regulators to make greater use of technology.

In remarks before the North American Securities Administrators Association's Annual Meeting, Ms. Goldsmith Romero re-proposed establishing a "National Financial Fraud Registry" to serve as a centralized repository for all financial fraud-related crimes and fines. She said that the Registry would require a "coordinated approach" among federal agencies, but could include state and local agencies as well, and would serve as a single public access point for comprehensive information on "convictions, sentencings, civil fines and resolved enforcement actions."

In her address, she also urged the state regulators to keep pace with technology, underscoring the importance of utilizing tools "available in the digital age." These include the ability to trace funds, trace crypto, use blockchain, use link analysis, use social media, and use data analytic tools. She said that these tools enhance the "ability to find connections between people" and can "help regulators determine connections to uncover those working in concert or for insider trading, for example." She said that "regulators could also consider AI or other tools to help establish beneficial ownership or other types of links."