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What is the Anti-Money Laundering Whistleblower Program?

Recent developments in anti-fraud law have led to the creation of the new Anti-Money Laundering Whistleblower Program. The Anti-Money Laundering Program, or Aml Whistleblower Program, has been lauded as a crucial and long-overdue step toward combating violations of the Bank Secrecy Act.

When you are considering blowing the whistle on fraud happening in your company, you need experienced whistleblower attorneys by your side. Staying up to date on new evolutions in anti-fraud law is a critical component in ensuring that your legal team is ready and able to assist you to the fullest extent of their ability.

What is the Anti-Money Laundering Whistleblower Program?

Created in 2021, the Aml Whistleblower Program was established as part of the broader National Defense Authorization Act. The program is administered by the Department of Treasury and is a new, key component of the American financial crimes enforcement network. It offers the chance for broad change within the area of money laundering enforcement actions.

Some experts in the field see the creation of the AML Whistleblower Program as akin to the powerful whistleblower programs created by the Dodd-Frank Act of 2010. These anti-fraud enforcement actions, connected to the Securities and Exchange Commission as well as the Commodity Futures Trading Commission, are now effective enforcement tools that help catch, fight, and prevent financial fraud. Whistleblower experts hope that the AML Whistleblower Program may prove similarly vital.

The AML Whistleblower Program, like others of its kind, offers financial rewards to whistleblowers who come forward with information related to Bank Secrecy Act (BSA) violations. Whistleblowers may be entitled to up to 30% of the funds collected as the result of a successful BSA violation enforcement action.

Notably, whistleblower rewards are mandatory as part of the Anti-Money Laundering Whistleblower Program. As long as the sanctions imposed by the action are over $1 million, the mandatory whistleblower award component of the program can be awarded.

What Are the Key Features of the AML Whistleblower Program?

The AML Whistleblower Program involves certain key features that define its parameters and make it unique from other whistleblower reward programs.

Importantly, the passage of the AML Whistleblower Program still covers previous wrongdoing, prior to the program’s creation. As long as the six-year statute of limitations has not passed, the AML Whistleblower Program may still be invoked to address even previous violations of the Bank Secrecy Act. In addition to past wrongdoing, a whistleblower may also submit information about violations that are about to occur. This expansive act was written to create as many opportunities for whistleblowers to collect financial awards as possible.

Whistleblowers do not have to be industry insiders in order to submit a claim under the AML Whistleblower Program. As long as they provide previously unreported, unknown information to the government, the information they provide may be based on independent or even personal knowledge. It may also be from an independent evaluation of publicly available information.

However, insiders may also file claims within the parameters of the AML Whistleblower Program, even if they have already filed complaints within the internal structure of their company to address their claims. You also do not have to be a U.S. citizen in order to make a claim, and international whistleblowers are welcome. Claims may also be made anonymously, as long as the whistleblower is working with a qualified qui tam attorney. Certain claimants are protected against employer retaliation related to their protected disclosure.

Finally, it is worth noting that a whistleblower may collect a reward under the AML Whistleblower Program even if their information is related to an ongoing investigation. Your information does not have to launch a new investigation; it must only relate to a useful discovery in order to qualify you for an award under the AML Whistleblower Program. As long as a whistleblower cooperates with the investigation and voluntarily provides assistance, they may be eligible for a financial award.

What Kind of Information Can Whistleblowers Submit to the Anti-Money Laundering Program?

If you think you may have information regarding a possible violation of the Bank Secrecy Act, report it. Speaking to a whistleblower lawyer is often free and confidential. Whistleblower attorneys are experienced in sifting through the information presented in order to build the strongest possible case.

Specific examples of violations that may be reported can include but are by no means limited to:

  • Recurring non-compliance with Bank Secrecy Act requirements
  • Failure of a financial institution to institute an effective compliance program
  • Failures in regards to specific pillars or components of Bank Secrecy Act regulations

Is There a Monetary Reward for Reporting Money Laundering?

It bears repeating that whistleblower awards through the AML Whistleblower Program are mandatory. As long as the amount involves is at least $1 million in sanctions (including penalties, disgorgement, and interest) from a BSA violation, and the whistleblower voluntarily provided new and valuable information that leads to a recovery, there is no reason why they should not receive up to 30% of the recovered funds.

Exclusions do exist, however. Whistleblowers who have been convicted of a criminal violation related to the misconduct under investigation may be ineligible to receive an award. While blowing the whistle on money laundering can be done anonymously, the Treasury Department must become aware of the identity of a whistleblower in order for the whistleblower to receive their award.

How Are Whistleblowers Who Report Money Laundering Protected?

AML whistleblowers are able to remain anonymous throughout the process if working with a whistleblower attorney. This step greatly insulates whistleblowers from retaliation or unwanted publicity. The only time a whistleblower’s identity must be revealed is in the collection of their reward from the Department of the Treasury, and even that disclosure is protected and does not need to be made public.

Additionally, qualifying whistleblowers (often those working in the field related to their protected disclosure) are eligible for certain legal protections. Retaliation against a protected whistleblower is illegal and may result in fines, back pay, and reinstatement. Firing a protected whistleblower is prohibited, as are certain kinds of harassment, demotion, reduction of pay or hours, suspension, or notable changes in the terms of employment related to a whistleblower’s protected disclosure.

What Determines if FinCEN or Another Agency Will Pursue BSA Violations?

There are several variables at play when determining if the Financial Crimes Enforcement Network (FinCEN) or another agency will pursue BSA violations. Some of the anti-money laundering program requirements involved may deal with the timeline of the violations or the scope of the wrongdoing. Typically, some of the factors involved may be:

  • The severity of the violation
  • The violation’s possible impact on other financial systems
  • How widespread the wrongdoing is
  • How much financial gain has come from the violations

How Can an AML Whistleblower Lawyer Help?

An AML whistleblower lawyer is an invaluable resource when considering submitting a claim. A whistleblower lawyer can help you understand which documents you may or may not need in order to build your case. They can help ensure that you do not tamper with evidence accidentally, or take anything that may endanger your own situation. An AML whistleblower lawyer can ensure that in the event that your employer attempts to retaliate against you because of your actions, you are fully protected. They may also help you remain anonymous throughout the proceedings, and ensure that the case is followed through at every level of bureaucracy.

Finally, an AML whistleblower lawyer can help guarantee that reporting money laundering is done to the fullest extent of the law while allowing you to continue to lead your own life. An AML whistleblower lawyer can handle the paperwork and process of reporting wrongdoing while you continue in your own career. Others’ wrongdoing does not need to stall you on your way to success. Becoming a whistleblower should only bring you financial gain, in terms of the fullest amount of financial award possible, as well as the satisfaction of knowing that you have done the right thing.

To speak with a qualified AML whistleblower lawyer today, consider a confidential case evaluation to discuss your situation.

The post What is the Anti-Money Laundering Whistleblower Program? appeared first on Find US Lawyers.



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What is the Anti-Money Laundering Whistleblower Program?

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