The Financial Crimes Enforcement Network (FinCEN) recently published a notice of proposed rulemaking (NPRM) titled “Whistleblower Incentives and Protections.” The proposal implements 31 USC § 5323 as amended by the Anti-Money Laundering Act of 2020 (AML Act) and the AML Whistleblower Improvement Act of 2022, establishing procedures for submitting tips, applying for awards and obtaining confidentiality and anti-retaliation protections. The NPRM represents a significant step toward operationalizing a program that Congress authorized over five years ago, and it carries meaningful practical implications for financial institutions.
The proposed program would cover potential violations of the Bank Secrecy Act (BSA) and certain sanctions-related statutes – including the International Emergency Economic Powers Act, the Trading with the Enemy Act and the Foreign Narcotics Kingpin Designation Act (the Kingpin Act). FinCEN also positions the program as supporting enforcement of the US Department of the Treasury’s (Treasury) Outbound Investment Security Program and the US Department of Justice’s (DOJ) Data Security Program where those matters fall within the scope of the covered statutes. The broad statutory reach means that potential whistleblowers are not limited to traditional AML scenarios – sanctions compliance failures and related conduct are squarely within scope.
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