Glencore plc, a Swiss-British mining and commodities trading company based in Baar, Switzerland, has disclosed that the US Commodity Futures Trading Commission recently informed the company that it is investigating possible violations of the Commodity Exchange Act and/or CFTC regulations in connection with potential corrupt practices by Glencore. Glencore’s disclosure follows the CFTC Division of Enforcement’s issuance of an advisory on March 6, 2019, announcing an enforcement initiative under the Commodity Exchange Act involving foreign corrupt practices.
This CFTC investigation seems to be similar in scope and subject matter to a subpoena served on the company last year by the US Department of Justice. In July 2018, Glencore announced that one of its subsidiaries, Glencore Ltd, had received a subpoena from the US Department of Justice for the production of documents related to possible money laundering and FCPA violations in connection with the company’s operations in the Democratic Republic of the Congo, Nigeria, and Venezuela. In response to the subpoena, Glencore established a committee of the board to oversee the company’s response to the DOJ.