On June 22, the U.S. House Committee on Financial Services voted unanimously by voice to approve H.R. 7195, a bill amending the whistleblower provisions of the Anti-Money Laundering Act of 2020 (AML Act). The AML Act established a whistleblower award program for money laundering whistleblowers but major loopholes have undermined the program. H.R. 7195 closes these loopholes.
“This bipartisan, bicameral legislation provides a proven solution to improving the whistleblower fund of the Financial Crimes Enforcement Network (FinCEN),” said Representative Alma Adams (D-NC) the principal sponsor of the bill. “FinCEN’s whistleblower fund was designed to pay awards to the brave souls who too often risk their livelihoods and their lives to report criminal wrongdoing that they witness. Unfortunately, we have found that FinCEN’s award model which we implemented in 2020 AMLA has been so far insufficient to meet the statutory requirements. So I’m proud to say this legislation brings FinCEN’s fund in line with other successful funds currently operating in the federal government and will substantially aid FinCEN as it executes its Congressionally directed mission.”
H.R. 7195 addressed two major shortcomings with the AML Act. First, the bill adds a required statutory minimum award of 10%. Currently, there is no minimum award guarantee, meaning that all whistleblower awards through the program are discretionary. Discretionary award programs have proven to be ineffective at properly...
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