FinCEN Head Details Anti-Money Laundering Whistleblower Program

Over the last couple of decades, technology and worldwide commerce have triggered numerous new methods of money laundering for individuals and companies looking to hide the proceeds of illegal activities. A law enacted a few years ago is aimed at making money laundering more difficult and giving people with relevant knowledge additional motivation to tell authorities what they know. By combining tough sanctions with monetary rewards, the federal government is hoping to reduce the incidence of financial fraud. 

The Anti-Money Laundering Act of 2020 (AMLA) introduced a groundbreaking whistleblower program administered by the Financial Crimes Enforcement Network (FinCEN). This program empowers individuals with knowledge of money laundering and other financial crimes to come forward and report violations to the government.

In a speech to the Securities Industry and Financial Markets Association (SIMFA) Anti-Money Laundering conference, FinCEN Director Andrea Gacki spoke about a variety of pertinent topics, including the Anti-Money Laundering and Sanctions Whistleblower Program. Gacki noted that the program has led to more than 270 tips on a wide range of subjects, including cybercrime, drug trafficking and violations of sanction rules against Iran and Russia. 

Whistleblowers who provide original information leading to a successful enforcement action can receive a reward of up to 30 percent of the monetary sanctions imposed. This substantial incentive has encouraged individuals to disclose critical information about suspicious activities within financial institutions. Reports can relate to potential violations of statutes such as:

  • Bank Secrecy Act

  • International Emergency Economic Powers Act (IEEPA)

  • Foreign Narcotics Kingpin Designation Act

  • Trading with the Enemy Act

To qualify as a whistleblower, the information submitted must be derived from someone’s personal knowledge or independent analysis. You cannot be considered a whistleblower if you provided the information in response to a subpoena or court order. 

If you believe you have information about money laundering or other financial crimes, it is crucial to seek legal counsel to understand your rights and options. An attorney from Kardell Law Group can advised you on the best way to come forward and advocate for suitable compensation if the information you provide leads to a sanction of at least $1 million.