In an era where financial crimes like money laundering threaten global security, whistleblowers play a pivotal role in uncovering illicit activities. The Anti-Money Laundering Act (AMLA) of 2020, bolstered by the AML Whistleblower Improvement Act of 2023, has introduced a transformative program to incentivize whistleblowers with financial rewards and robust protections. Here’s everything you need to know about reporting anti-money laundering (AML) violations and earning a whistleblower award.
The AMLA Whistleblower Programme
The AMLA Whistleblower Program was designed to strengthen enforcement of AML laws and Bank Secrecy Act (BSA) regulations. Under this program, whistleblowers who voluntarily provide original information leading to successful enforcement actions can receive awards ranging from 10% to 30% of the monetary sanctions collected, provided the sanctions exceed $1 million.
Recent amendments under the AML Whistleblower Improvement Act have further enhanced this programme by:
Establishing a minimum award threshold of 10%.
Expanding coverage to include violations of U.S. sanctions laws, such as the International Emergency Economic Powers Act and the Foreign Narcotics Kingpin Designation Act.
Creating a dedicated fund for whistleblower rewards, ensuring timely payouts.
These measures aim to combat illicit financing that fuels organized crime, terrorism, and corruption.
Why report money laundering?
The stakes in AML enforcement are high. For example, Danske Bank recently paid over $2 billion in penalties for failing to comply with AML protocols. Such cases underscore the critical role of whistleblowers in exposing misconduct that might otherwise remain hidden.
Whistleblowers not only contribute to justice but also stand to gain significant financial rewards while benefiting from anonymity and legal protections against retaliation.
How to report AML violations
Gather Evidence: Ensure the information is original and credible. This could include first-hand knowledge or independent analysis of money laundering schemes.
Submit Anonymously (Optional): If represented by an attorney, you can report violations anonymously through the Financial Crimes Enforcement Network (FinCEN).
Work With Authorities: Provide assistance during investigations to strengthen your case for a reward.
Eligibility and Protections
Unlike other programs, the AMLA Whistleblower Program allows compliance professionals and even non-U.S. citizens to qualify for awards. Additionally, stringent confidentiality measures ensure that your identity remains protected unless disclosure is legally required during court proceedings.
The Path Forward
The AMLA Whistleblower Program represents a new era in financial crime enforcement, offering unprecedented opportunities for individuals to contribute meaningfully while receiving tangible rewards. By stepping forward, whistleblowers can help dismantle criminal networks and promote global financial integrity.
If you have information about potential AML violations, now is the time to act—justice awaits.
