The U.S. government has launched a powerful new tool in the fight against financial crime: the Anti-Money Laundering (AML) Whistleblower Program. Established through the Anti-Money Laundering Act of 2020 and expanded by the AML Whistleblower Improvement Act in December 2022, this program marks a major shift in how the U.S. encourages individuals to report money laundering and sanctions violations. Modeled after the success of the SEC’s whistleblower program, the AML Whistleblower Program is now positioned as a key mechanism to expose hidden financial crimes that threaten national and global security.
What Is the AML Whistleblower Program?
The AML Whistleblower Program, administered by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), offers monetary rewards and protections to individuals who provide original information that leads to successful enforcement actions for violations of the Bank Secrecy Act (BSA) or U.S. economic sanctions laws. This includes money laundering, illicit financing, and evasion of sanctions imposed by the Office of Foreign Assets Control (OFAC).
Before the 2022 reform, the program had a significant flaw—it lacked a guaranteed minimum award. As a result, whistleblowers had little incentive to come forward. The AML Whistleblower Improvement Act fixed that, ensuring rewards are now meaningful and consistent with other federal whistleblower programs.
Who Can Be a Whistleblower?
Anyone with non-public, original information about a violation of the BSA or U.S. sanctions laws can qualify. This includes:
- Employees of financial institutions
- Compliance officers and auditors
- Business partners or contractors
- Foreign nationals
- Even individuals involved in the wrongdoing (with some limitations)
Importantly, whistleblowers do not need to be U.S. citizens or reside in the U.S. to participate in the program.
Eligible Violations
The scope of violations covered under the AML Whistleblower Program is broad and includes:
- Traditional money laundering schemes
- Know-your-customer (KYC) and customer due diligence (CDD) failures
- Suspicious activity report (SAR) violations
- Structuring and smurfing
- Use of shell companies to obscure beneficial ownership
- Terrorist financing
- Cryptocurrency-based money laundering
- Evasion of OFAC sanctions, including the use of intermediaries to bypass restrictions
How Do Awards Work?
Whistleblowers can receive between 10% and 30% of monetary sanctions collected in enforcement actions that result in penalties exceeding $1 million. The amount awarded is based on factors such as:
- The significance of the information provided
- The degree of assistance by the whistleblower and their legal counsel
- The interest of the government in deterring similar violations
- Whether the whistleblower participated in the misconduct
There is no cap on the total award amount, and in large-scale enforcement actions, the financial rewards can be substantial. For example, a whistleblower whose information leads to a $100 million enforcement action could receive between $10 million and $30 million.
Confidentiality and Protection from Retaliation
The AML Whistleblower Program offers robust protections:
- Confidentiality: Whistleblower identities are protected. FinCEN is prohibited from disclosing identifying information unless required by law or consented to by the whistleblower.
- Anti-Retaliation Protections: Employers are barred from retaliating against whistleblowers who report violations internally or to the government. Whistleblowers who face retaliation can bring a private lawsuit and may be entitled to reinstatement, double back pay, and compensation for attorney’s fees and litigation costs.
How to File a Tip
Tips must be submitted to FinCEN using the official whistleblower form, which is currently under development. In the interim, whistleblowers can submit information by contacting FinCEN directly and should consider working with experienced counsel to ensure their submission is complete and maximizes their chances of receiving an award.
Key steps include:
- Documenting all relevant information and evidence
- Submitting original (non-public) information
- Demonstrating how the information relates to a BSA or sanctions violation
- Ensuring your submission is voluntary and timely
Why This Matters
Global money laundering enables terrorism, drug trafficking, human rights abuses, and large-scale corruption. By empowering insiders to report misconduct, the AML Whistleblower Program aims to break down the secrecy that shields illicit financial activity.
In addition, recent geopolitical tensions—including sanctions against Russia, Iran, and North Korea—have significantly increased the importance of sanctions enforcement. The Treasury Department and other agencies are investing more resources than ever into finding and punishing violations. This creates an unprecedented opportunity for whistleblowers to step forward, make a difference, and receive substantial compensation for doing so.
Partnering with Legal Counsel
Because of the complex and high-stakes nature of these cases, whistleblowers are strongly encouraged to work with qualified legal counsel. An attorney can help:
- Evaluate the strength of your claim
- Ensure your information qualifies as “original” and actionable
- Navigate confidentiality rules and anti-retaliation protections
- Draft and file the submission in a way that maximizes the likelihood of an award
- Maintain anonymity by submitting the claim on your behalf
Conclusion
The AML Whistleblower Program represents a groundbreaking step forward in financial crime enforcement. With guaranteed financial rewards, powerful legal protections, and global reach, the program is designed to incentivize people with inside knowledge to expose money laundering and sanctions violations. As the program matures, it is expected to become one of the most important tools for uncovering hidden financial crime worldwide.
If you have information about illegal financial activity, now is the time to speak with an attorney and consider filing a whistleblower claim. The risks of staying silent can be high—but the rewards for speaking up have never been greater.