New SEC task force prioritizes combatting cross-border fraud

On September 5, 2025, the Securities and Exchange Commission (SEC) announced the formation of a new task force (the Task Force) to combat cross-border fraud impacting US investors. This initiative follows the Department of Justice’s (DOJ) Criminal Division’s May 2025 memorandum highlighting its enforcement priorities and policies, as well as the Deputy Attorney General’s new guidance for FCPA enforcement, all of which indicate that cross-border investigations, particularly those concerning foreign-based companies, will remain a priority under this Administration.

The Task Force

Initially, the Task Force will focus on violations of US federal securities laws, and more specifically, market manipulation, involving “foreign-based companies.”  The Task Force’s enforcement efforts will include targeting auditors, underwriters and other entities that help foreign-based companies access US markets. The press release singled out China as an example of a foreign jurisdiction from where foreign companies can commit potential securities law violations.

The Task Force appears to be just the beginning. Chairman Paul S. Atkins directed the staff “to consider and recommend other actions that would better protect US investors.”

Intersection between the SEC Task Force and DOJ enforcement priorities

In its May memorandum, the DOJ noted that the “exploitation of our financial system is detrimental to American interests in and of itself and can also enable underlying criminal conduct” and that “unchecked fraud in US markets and government programs robs hardworking Americans and harms the public fisc.”

The memorandum, which also addressed cartels and terrorist groups, emphasized “investor protection against fraudulent practices connected to certain foreign adversary companies listed on the US exchanges.” It touted the US financial system as “the safest and most secure in the world[,]” which must be protected from those aided by “foreign companies and financial networks.”

Looking ahead

This Administration is making cross-border enforcement a strategic priority. Companies should expect cross-border enforcement actions to increasingly shape SEC and DOJ activity. Organizations with global supply chains, foreign affiliates or ties to high-risk jurisdictions should anticipate heightened scrutiny and proactively test internal controls, assess third-party risks and prepare for a more coordinated enforcement environment.

Special thanks to law clerk Joaquin Banuelos for assisting in the preparation of this article.