In conjunction with an omnibus spending bill, Congress passed in late December 2022, the Anti-Money Laundering Whistleblower Improvement Act, which on December 29, 2022, President Biden signed into law. This law permits whistleblowers to receive 10% to 30% of any monetary sanction the government imposes over $1 million for money laundering. Money laundering is the process of concealing the origin of illegally-obtained money – typically acquired through illicit activities such as drug trafficking, corruption, embezzlement, or gambling – by converting it to legitimate sources.
Depending on the size of the case, whistleblower awards under the new law can be substantial, running into the millions or tens of millions of dollars. Not surprisingly, these changes are aimed to incentivize whistleblowers to report wrongdoing.
In light of the new law, employers could expect to see a considerable surge in whistleblower claims against their organizations. In preparation, they should look to enhance their “speak-up” policies and other reporting channels; examine their investigation protocols; review their audit procedures to ensure there is a clear process for identifying red flags; and invest in training with respect to these types of issues. Training is especially important with respect to front-line managers who play a critical role in responding to concerns raised and ensuring that there is no subsequent retaliation as a result.
Under federal law, retaliation is prohibited against...
Dangote Group has dismissed as false and malicious a publication alleging that its President, Aliko Dangote, distanced himself from Tony Elumelu, describing the report as entirely baseless. In a s...