The passing of the Anti-Money Laundering (AML) Whistleblower Improvement Act in December 2022 has drawn attention from whistleblower advocates, who see it as a significant step forward in the United States’ efforts to combat money laundering and sanctions evasion. Andrea Gacki, Director of the Financial Crimes Enforcement Network (FinCEN), recently discussed the progress of the law and the AML and Sanctions Whistleblower Program it established.
Speaking at SIFMA’s Anti-Money Laundering & Financial Crimes Conference, Gacki emphasized the importance of FinCEN’s commitment to implementing and maximizing the potential of the new Anti-Money Laundering and Sanctions Whistleblower Program. She noted that whistleblowers have provided information on various pressing policy issues, including sanctions evasion related to Iran and Russia, drug trafficking, cybercrimes, and corruption. Since the program’s inception, over 270 unique tips have been received, many of which align with Treasury’s top priorities.
Initially established by the AML Act of 2020, the AML Whistleblower Program faced challenges in incentivizing whistleblowers to come forward. However, the passage of the AML Whistleblower Improvement Act reformed and expanded the program, addressing some of these issues. Gacki stated that while regulations for the program have yet to be published by the Treasury Department, the program is actively receiving, reviewing, and sharing tips with enforcement partners. Plans are underway to propose rules for the whistleblower award program in the summer, with hopes of initiating awards in the near future.
Gacki also highlighted the significant civil money penalty of $3.4 billion imposed by FinCEN against Binance in November for violations of the Bank Secrecy Act. It has been reported that several whistleblowers provided information to U.S. authorities regarding Binance’s misconduct.
The AML Whistleblower Program provides anonymous reporting channels, monetary awards, and anti-retaliation protections to individuals who voluntarily disclose violations of the BSA and other money laundering schemes, as well as sanctions evasion. Qualified whistleblowers, who provide original information leading to successful enforcement actions, are entitled to monetary awards ranging from 10% to 30% of the funds collected by the government in connection with their disclosure.
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