The Department and Justice (DOJ) and Financial Crime Enforcement Network (FinCEN) actively take enforcement actions against individuals and companies that violate anti-money laundering (AML) laws and Bank Secrecy Act (BSA) regulations. To strengthen these efforts, Congress included a robust whistleblower reward program in the Anti-Money Laundering Act (AMLA) of 2020. The AMLA Whistleblower Reward Program requires the Department of the Treasury (Treasury) to provide monetary awards to whistleblowers who voluntarily provide original information that leads to successful enforcement actions for AML violations.
The AMLA whistleblower law is posed to be a game changer in AML enforcement, enhancing national security by combating illicit financing, including money laundering through banks and cryptocurrency companies. Under the AMLA Whistleblower Reward Program, whistleblowers may receive awards of between 10% and 30% of the monetary sanctions collected in successful enforcement actions. Given the potential for significant fines in AML enforcement actions, whistleblowers have a strong incentive to report AML violations. Additionally, whistleblowers can submit tips anonymously if represented by an attorney.
This article outlines recent enforcement actions for AML violations and explains how whistleblowers can report AML violations and qualify for whistleblower awards.
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