The proposed rule would finally implement Section 6314 of the Anti-Money Laundering Act of 2020 (AML Act) and the Anti-Money Laundering Whistleblower Improvement Act of 2022, which together authorize enhanced awards and anti-retaliation protections for individuals who voluntarily report violations of the Bank Secrecy Act (BSA), the International Emergency Economic Powers Act (IEEPA), the Trading With the Enemy Act of 1917 (TWEA), and the Foreign Narcotics Kingpin Designation Act (Kingpin Act). While FinCEN had previously been accepting tips, the proposed rule would establish a detailed framework for the Whistleblower Program and allow FinCEN to process whistleblower rewards. The goal of the program is to strengthen the US government’s ability to combat money laundering, terrorist financing, sanctions violations, and related financial crimes.

1. Following the SEC’s Playbook

FinCEN’s proposed Whistleblower Program closely mirrors the structure and mechanics of the US Securities and Exchange Commission’s (SEC) well-established whistleblower program. Like the SEC program, FinCEN’s proposal requires whistleblowers to submit tips using a standardized Tip, Complaint, or Referral form, the same form type used by the SEC, and permits anonymous submissions, provided the whistleblower is represented by counsel. To qualify for an award, a whistleblower must voluntarily provide original information derived from independent knowledge or independent analysis, be the original source of...

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