Reportable Misconduct Related to Money Laundering Takes Several Forms

Money laundering is not just a crime in and of itself, but it is also used to conceal other serious criminal misconduct. Given the success of similar programs within various government departments, the Anti-Money Laundering Act (AMLA) of 2020 created a powerful whistleblower reward program for individuals who report violations of the Bank Secrecy Act (BSA), the nation’s primary anti-money laundering law.

Administered by the Financial Crimes Enforcement Network (FinCEN), the program not only covers impropriety at banks, but thousands of money services businesses, such as check cashing outlets and transmitters. Some of the specific laundering-related problems that could justify a whistleblower report include the following:

  • Failure of employees to follow procedures related to high-risk transactions, such as transfers involving countries frequently associated with money laundering

  • Lack of appropriate standards relating to the identification of customers

  • Failure to submit Suspicious Activity Reports or Currency Transaction Reports when warranted

  • Inaction when information, or lack thereof, about a customer’s income source, investment objectives raises red flags

  • Assets that appear to be generated from unlawful activities, which might include healthcare fraud, human trafficking, crypto “romance” scams or corruption

  • Misrepresentations to regulators or counterparties about cybersecurity, data retention or compliance testing tied to AML controls

  • Structuring or advising clients how to evade reporting thresholds.

The AMLA program offers the potential for monetary awards from enforcement recoveries and includes confidentiality and anti-retaliation protections, reflecting key elements of the SEC’s whistleblower program.

Should you become aware of activity that violates rules designed to stop money laundering, documentation is key. Preserve relevant emails, audit findings, policy documents, transaction logs and internal communications. However, don’t overstep your authority by accessing systems beyond your authorization or removing customer data improperly.

Early, well-documented disclosures can make a difference. Experienced counsel can help evaluate eligibility, prepare submissions to FinCEN, and coordinate with any parallel agency inquiries. Whether you’re a compliance analyst, site manager, engineer or hold some other position, you might have the information necessary to expose BSA violations and emerging laundering schemes. 

Kardell Law Group has extensive experience successfully representing whistleblowers in a wide range of industries. We can protect you against retaliation and pursue potential awards for your diligence and honesty.