The Financial Crimes Enforcement Network (“FinCEN”) is facing criticism from whistleblower advocates over its proposed rules to implement the Anti-Money Laundering Whistleblower Improvement Act of 2022 (“AML WIA”). The National Whistleblower Center (“NWC”), a Washington, DC-based NGO, submitted a formal 19-part comment to FinCEN on April 30, arguing that the proposed rule strays from Congress’s intent and the letter of the AML WIA. Whistleblower advocates say the draft rules offer limited protections and could dampen incentives for whistleblowers.
This week, the NWC submitted their first supplemental comments to the proposed rule, urging for three Dodd-Frank regulations used by the U.S. Securities and Exchange Commission’s (“SEC”) whistleblower program. The NWC notes that the AML WIA is modeled after the Dodd-Frank Act, which established the SEC’s highly successful whistleblower program. According to SEC data, that program has recovered more than $6.3 billion in monetary sanctions since 2010.
The NWC’s first recommendation is for FinCEN to clarify the procedures for whistleblowers to submit official reports based on SEC regulations. The group contends that the current proposal lacks a clear filing deadline, nor does it define the timeline for meeting a “reasonable time” for filing, potentially resulting in unfair award denials due to vague timeliness criteria.
The NWC also calls on FinCEN to withdraw a provision that would require certain employees and officials, such as...
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