Anti-Money Laundering Whistleblower Program

Money laundering is the process of making illegally gained money appear to be legally gained by abusing the legitimate financial system. Our economy and financial institutions are more global and technologically advanced than ever. Money launderers, kleptocrats and other financial criminals from around the world use stable and secure U.S. financial institutions to not only to protect their ill-gotten money, but to hide it from their home governments.

The Bank Secrecy Act of 1970 (BSA) requires U.S. financial institutions to assist the Department of Treasury and other federal agencies to detect and prevent money laundering. Among other regulations, the BSA requires financial institutions to properly keep records of cash transactions exceeding $10,000 and to report suspicious transactions using Suspicious Activity Reports (SARs).

The U.S. Department of the Treasury collects and analyzes the SAR transactions through its Financial Crimes Enforcement Network (FinCEN) bureau, which is tasked with combating international money laundering, tax evasion, terrorist financing and other criminal activities.

In 2020, Congress passed the Anti-Money Laundering Act (AMLA), which required the U.S. Department of the Treasury to create and administer a Whistleblower program to provide protection and monetary incentives to Whistleblowers who voluntarily raise alarms within their companies or to the federal government about violations of the BSA or other federal anti-money laundering laws (the “AML Whistleblower Program”).

In 2022, Congress passed the Anti-Money Laundering Whistleblower Improvement Act, which was signed into law as a part of the Consolidated Appropriations Act. By doing so, Congress fortified the AML Whistleblower Program by providing, among other improvements: (1) a 10% minimum award for Whistleblowers whose information leads to sanctions over $1 million; (2) a Financial Integrity Fund to pay awards based on criminal forfeitures, fines, and victim restitution from the sanctioned entities (instead of taxpayer dollars); and (3) less restrictions on potential Whistleblowers who learn of violations through their roles as compliance or audit professionals. The changes were meant to further encourage potential Whistleblowers to report violations within their organizations to the federal government.

Under the AML Whistleblower Program, a Whistleblower can receive a reward between 10% to 30% of monetary sanctions in successful enforcement actions exceeding $1 million imposed by the government based on the information provided by the Whistleblower.

The rewards under the AML Whistleblower Program are potentially significant. In October 2024, FinCEN announced that TD Bank agreed to pay over $1.8 billion in penalties to resolve investigations into BSA and money laundering violations. This penalty marks the largest-ever fine under the BSA and the largest penalty against a depository institution in U.S. Treasury and FinCEN history.

Anti-Money Laundering FAQs

What Types of Misconduct Can Be Reported Under the NHTSA Whistleblower Program?

The AML Whistleblower Program incentivizes Whistleblowers to report to the Department of the Treasury and FinCEN information about their company’s violations of the following anti-money laundering federal laws:

Bank Secrecy Act (BSA);
International Emergency Economic Powers Act;
Trading With the Enemy Act; and
Foreign Narcotics Kingpin Designation Act.

Misconduct covered under the AML Whistleblower Program includes any possible violation of these laws and regulations that has happened, is about to happen, or is ongoing. These violations include:

Companies conducting business with clients who are sanctioned individuals or entities, or individuals or entities from a sanctioned country;
Companies allowing clients who are sanctioned individuals or entities to use the company’s systems or tools;
Companies failing to maintain adequate anti-money laundering compliance programs to avoid conducting business or transacting with sanctioned individuals or entities; and
Continued or repeated violations of sanctions, rules and requirements.

Historically, FinCEN has kept and continues to keep heightened attention to several common types of violators, which include:

Money Launderers – individuals or entities who skirt federal laws to move money from illegal transactions and businesses (i.e., illegal drug sale proceeds) into the legal and legitimate economy.
Terrorists – individuals or entities who rely on suspect and unlawful financing based on laundering money obtained by frauds, extortion, and other crimes.
Casinos and Money-Services Businesses (MSB) – entities that transact in frequent and/or large cash or currency transactions (i.e., cashier of traveler checks, pawnbrokers, currency exchanges, dealers in precious metals, stones or jewels).
Professionals – certain accountants, real estate agents, who are commonly exposed to criminals seeking their services to launder money through cash large cash transactions (i.e., high end auto, airplane or boat dealers).
Insiders – individuals at financial institutions subject to the federal anti-money laundering laws, who willingly violates the laws for a client or for themselves for personal gain (i.e., investment bankers who overlook SARs requirements for a client).
Sanctioned Individuals or Countries – those engaging in prohibited and improper trade or financial transactions with parties who pose a threat to U.S. foreign policy and national security, including sanctioned foreign countries and regimes, narcotics traffickers, and terrorists.

Money laundering is often an international racket. The money laundering violation does not need to occur within the United States, it just needs to be in some way related to a company or financial institution with a presence in the United States and subject to the jurisdiction of U.S. anti-money laundering laws.

Who is an Eligible AML Whistleblower?

An eligible AML Whistleblower is any individual, or two or more individuals acting jointly, who voluntarily provides original information relating to a violation of the Bank Secrecy Act (BSA) or other federal anti-money laundering laws to: their employer, the Secretary of Treasury (Secretary), or the Department of Justice (DOJ).

Unlike other Whistleblower programs that exclude audit and compliance personnel, the AML Whistleblower Program does not limit award eligibility for Whistleblowers who provide information relating to a violation learned “as part of the job duties of the individual or individuals,” which includes audit and compliance personnel.

The Whistleblower must be an individual (including persons living outside the United States and non-U.S. citizens) and not a company or another type of entity.

Whistleblowers are not required to report their concerns internally first; they may report directly to FinCEN.

What is Considered Original Information?

“Original Information” is information:

derived from the Whistleblower’s independent knowledge or independent analysis
- Independent knowledge means factual information in the Whistleblower’s possession that is not solely derived from publicly available sources, but is gained from the Whistleblower’s experiences, communications and observations in their business or social interactions, and need not be first-hand knowledge of the alleged violation.
- Independent analysis means the Whistleblower’s own analysis, whether done alone or in combination with others. Analysis means the Whistleblower’s examination and evaluation of information that may be publicly available, but which reveals information that is not generally known or available to the public.
that is not already known by the Secretary or the DOJ from any other source; and
that is not exclusively derived from an allegation made in a judicial or administrative hearing, in a governmental report, hearing, audit, or investigation, or from the news media, unless the Whistleblower is a source of the information.

Typically, under other Whistleblower programs, certain information is not deemed to be “original information” when subject to the attorney-client privilege or information learned because the Whistleblower held certain controlling roles at a company (such as attorney, corporate officer, or director) and the Whistleblower learned the information from another person. These individuals often face additional hurdles as potential Whistleblowers and must carefully analyze how they came to learn the information they want to report and any obligations regarding the information.

Information of misconduct does not have to take place in the United States as long as it relates to a company or financial institution with a presence in the United States and subject to the jurisdiction of U.S. anti-money laundering laws.

How Does a Whistleblower Submit Information Under the AML Whistleblower Program?

The Secretary of Treasury has not yet published rules and procedures for Whistleblowers to follow under the AML Whistleblower Program to submit original information of violations of the BSA or other federal anti-money laundering laws. Until the Secretary publishes rules and procedures, Whistleblowers or their legal representative should submit their original information directly to the Secretary.

Additionally, the Whistleblower may also want to submit original information directly to FinCEN. Like the Secretary of Treasury, FinCen does not have rules or procedures for accepting Whistleblower submissions. However, FinCEN has historically accepted information or wrongdoing and criminal conduct prior to the AML Whistleblower Program.

Whistleblowers should obtain an official acknowledgment from the Secretary and FinCEN confirming receipt of their complaint or other submissions. It is anticipated that the Secretary and FinCEN will publish submission rules and procedures in the near future.

Whistleblowers can increase the chances that their information will lead to a successful AML or other whistleblower program investigation and action if they keep three things in mind:

The more specific the information is, the easier it is for the Secretary to follow the lead in opening an investigation.
The more credible the information is, the more likely it is that the Secretary will pursue it.
The more timely the information, the better able the Secretary is to discover any misconduct and put a stop to it.

Additionally, certain violations of the BSA and anti-money laundering laws may also be covered under the SEC, CFTC, IRS, and/or DOJ Whistleblower Programs as well as other state and federal regulatory and criminal enforcement actions (Related Actions), which also offer potential Whistleblower awards. The SEC, CFTC, IRS and DOJ have detailed rules governing their Whistleblower programs and the submission of original information. For information on those programs please click on the following links: SEC Whistleblower Program FAQs, IRS Whistleblower Program FAQs, CFTC Whistleblower Program FAQs, and DOJ Whistleblower Program FAQs.

What Are the AML Whistleblower Rewards?

If the Whistleblower provides original information of violations of the BSA or other federal anti-money laundering laws that lead to a successful judicial or administrative enforcement action brought by the Secretary resulting in monetary sanctions exceeding $1 million (Covered Action), the Whistleblower can apply for a Whistleblower reward.

The $1 million threshold can be satisfied if the total amount of monies collected from all defendants or parties in all civil or criminal actions or Related Actions that relied upon the AML Whistleblower’s original information totals at least $1 million.

The determination of the award amounts under the AML Whistleblower Program is entirely within the Secretary’s discretion.

Assuming all eligibility conditions are met for a Whistleblower award, the Secretary (in consultation with the DOJ if applicable), will award at least 10% and no more than 30%, in total, of the collected monetary sanctions in a Covered Action or Related Action. The percentage awarded in connection with an AML Covered Action may differ from the percentage awarded in connection with a Related Action.

When the Secretary makes awards to more than one AML Whistleblower in a Covered Action or Related Action, the Secretary will determine each Whistleblower’s individual award percentage. The total amount awarded to all AML Whistleblowers in the aggregate will be at least 10% and no greater than 30% of the amount the Secretary or the other authorities collect.

All AML Whistleblower awards are paid from the Financial Integrity Fund.

The Secretary will consider the following factors in determining the amount of an award based on the facts and circumstances of each case:

The significance of the information provided by the Whistleblower.
The extent of the assistance provided by the Whistleblower and any legal representative of the Whistleblower.
The programmatic interest of the Department of the Treasury in deterring violations of the Bank Secrecy Act and other federal anti-money laundering laws.
Additional relevant factors, such as the Secretary, in consultation with the DOJ, may establish.

The determination by the Secretary on whether and to whom to make an award is appealable within 30 days of the determination, however, the amount of the award is not appealable.

Can AML Whistleblower be Denied an Award?

Yes. The Secretary may deny an award to any Whistleblower:

who is, or was at the time the Whistleblower acquired the original information, a member, officer, or employee of
- an appropriate regulatory or banking agency;
- the Department of the Treasury or the Department of Justice; or
- a law enforcement agency; and
- acting in the normal course of the job duties of the Whistleblower.
who is convicted of a criminal violation related to the judicial or administrative action for which the Whistleblower otherwise could receive an award under this section; or
who fails to submit information to the Secretary or the DOJ, as applicable, in a form required by the Secretary.

Additionally, Whistleblowers are not entitled to an award if they:

knowingly and willfully make any false, fictitious, or fraudulent statement or representation; or
use any false writing or document knowing the writing or document contains any false, fictitious, or fraudulent statement or entry.

How Does an AML Whistleblower Apply for an Award in a Covered Action?

The Secretary of Treasury has not yet published rules and procedures for Whistleblowers to follow under the AML Whistleblower Program when submitting a claim for an award based on their submission of original information of violations of the BSA or other federal anti-money laundering laws. Until the Secretary publishes procedures, the Whistleblower should timely submit their award claim directly to the Secretary.

Like the Secretary of Treasury, FinCen also does not have rules or procedures for submitting a claim for an award. However, award claims can still be submitted directly to FinCEN.

Whether applying for an AML Whistleblower Program award through the Sectary or FinCEN, the Whistleblower should obtain an official acknowledgment confirming receipt of the award application. It is anticipated that the Secretary and FinCEN will publish award application procedures in the near future.

What Happens When Tips Are Used in a Related Action?

AML Whistleblowers may also be eligible to receive an award in a Related Action, if the Related Action is based on the same original information provided by the Whistleblower in the successful enforcement of the AML Covered Action:

A Related Action is a judicial or administrative action brought by either:
- Any appropriate Federal authority;
- A State Attorney General in connection with any criminal investigations;
- Any appropriate State regulatory agency; or
- A foreign law enforcement authority.

The Secretary will make an award to a Whistleblower in a Related Action if the Secretary determines the Whistleblower’s original information also led to the successful enforcement of the Related Action.

The Secretary may pay awards less than 10% for Related Actions where a Whistleblower may be paid by another Whistleblower award program.

How Does an AML Whistleblower Apply for an Award for a Related Action?

If a final order imposing monetary sanctions has been entered in a Related Action when the Whistleblower submits their AML Covered Action award application, then the Whistleblower should also inform the Secretary or FinCEN of their claim for the Related Action award in the same submission.

If the final order has not been entered yet in the Related Action, then the Whistleblower should submit another Whistleblower Reward submission after the date of entry of the final order in the Related Action. While the Secretary has not published the time in which a follow-up submission should be made after the entry of the final order, such submissions in other Whistleblower programs, upon which the AML Whistleblower Program is modeled, require they be made within 90 days from the date of entry of the final order in the Related Action.

Can Whistleblowers Remain Anonymous Under the AML Whistleblower Program?

The Whistleblower may submit their original information and award claim anonymously through an attorney. However, before the Secretary will pay any award, the Whistleblower must disclose their identity and provide such other information as the Secretary may require, directly or through their counsel.

The Secretary and DOJ will maintain all information provided by the Whistleblower as confidential and will not disclose any information, including information the Whistleblower submitted to the Secretary, FinCEN or DOJ that could reasonably be expected to reveal the identity of the Whistleblower, unless and until required to be disclosed to a defendant or respondent in connection with a public proceeding instituted by the appropriate federal or state authorities. These confidentiality assertions will not limit the ability of the DOJ to present evidence to a grand jury or to share such evidence with potential witnesses or defendants in the course of an ongoing criminal investigation.

If the Secretary or DOJ, in their discretion, determines that it is necessary to accomplish the purposes of the AMLA, they may provide the Whistleblower’s confidential information to other appropriate federal or state regulatory authorities, as well as federal, state, or international law enforcement agencies, provided that such authorities and agencies comply with the same confidentiality commitments.

A Whistleblower does not need to be represented by an attorney to submit information. However, the Whistleblower may not submit information anonymously without an attorney.

If an AML Whistleblower Reports Misconduct, Is There Any Protection Against Retaliation?

Yes, the AML Whistleblower Program provides robust protection for Whistleblower employees who report original information concerning violations of the BSA and federal anti-money laundering laws for an award, provided they first report the violations to their employers.

Additionally, AMLA provides broad anti-retaliation protection for Whistleblowers who generally provide information, assist and participate in investigations and actions by the Secretary, DOJ and Congress.

Employers may not discharge, demote, suspend, threaten, harass, or in any way discriminate in the terms and conditions of employment or post-employment because a Whistleblower lawfully:

Provided information to:
- the Secretary of Treasury or the DOJ;
- a Federal regulatory or law enforcement agency;
- any Member of Congress or committee of Congress; or
- a person with supervisory authority over the Whistleblower, or such other person working for the employer who has the authority to investigate, discover, or terminate misconduct; or
Initiated, testified in, or assisted in any investigation or action of the Department of the Treasury or the DOJ based upon or related to the information provided above by the Whistleblower; or
Provided information regarding any conduct that the whistleblower reasonably believes constitutes a violation of any law, rule, or regulation of BSA and federal anti-money laundering laws to:
- a person with supervisory authority over the Whistleblower at their place of employment; or
- another individual working for the employer, who the whistleblower reasonably believes has the authority to address, investigate, discover, or terminate the misconduct.

The AMLA anti-retaliation protections apply whether or not the Whistleblower provides original information or qualifies as a Whistleblower.

A Whistleblower retaliation claim must be filed with the Secretary of Labor no later than 90 days after the date on which the violation occurs. The Secretary of Labor will then investigate the claim, provide the person or entity named in the complaint an opportunity to respond in writing and request a hearing, and if it determines that there is reasonable cause to believe that a violation occurred, the Secretary of Labor can order relief.

If there is no final decision by the Secretary of Labor within 180 days of the filing of the retaliation claim, the Whistleblower may pursue an original action in the appropriate Federal District Court and seek back pay (with interest), reinstatement, reasonable attorneys’ fees, and reimbursement for certain costs in connection with the litigation. Individuals (not just employers) may be held liable for retaliation against the Whistleblower.

A Whistleblower filing a retaliation in Federal District Court must do so with in:

Six (6) years after the prohibited conduct.
Three (3) years after the facts material to the right of action are known, or reasonably should have been known, by the employee alleging retaliation, but not more than ten (10) years after the violation occurs.

Employers cannot require employees to arbitrate AMLA Whistleblower retaliation claims.

Helpful AML Whistleblower Program Information