SEC Forms Cross-Border Task Force to Combat Transnational Fraud

The Securities and Exchange Commission has announced the formation of a task force focused on strengthening enforcement efforts to combat cross-border fraud harming U.S. investors. The Cross-Border Task Force will investigate potential U.S. federal securities law violations related to foreign-based companies, targeting market manipulation schemes and scrutinizing gatekeepers such as auditors and underwriters. The task force will also examine potential securities law violations related to companies from foreign jurisdictions like China, where governmental control and other factors pose unique investor risks.

Key Takeaways:

• The Cross-Border Task Force will focus on investigating U.S. federal securities law violations related to foreign-based companies, including market manipulation schemes and gatekeeper enforcement.
• The task force will initially focus on companies with foreign connections, including those from China, where government control and other factors pose unique investor risks.
• The task force will leverage the Division of Enforcement's resources and expertise to combat international market manipulation and fraud.
• SEC Chairman Paul S. Atkins has welcomed international companies seeking access to the U.S. capital markets while emphasizing the agency's commitment to enforcing federal securities laws and protecting U.S. investors.
• The task force's formation builds on SEC Chairman Atkins' directive to other SEC divisions and offices to consider and recommend additional actions to better protect U.S. investors.

Statistics:

• No specific statistics are mentioned in the article regarding the number of foreign-based companies targeted or the number of investigations underway.

Sources:

• M2 PRESSWIRE-September 8, 2025-: SEC Announces Formation of Cross-Border Task Force to Combat Fraud (C)1994-2025 M2 COMMUNICATIONS RDATE:05092025