AML Whistleblower Lawsuit

Learn Everything You Need to Know About the Federal Government’s AML Whistleblower Program

The AML Whistleblower Program protects individuals who come forward with information about violations of the federal anti-money laundering (AML) statutes and sanctions violations. While federal agencies, including the Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Justice (DOJ), devote substantial resources to uncovering and prosecuting AML and sanctions laws violations, they also rely heavily on current and former bank personnel and other individuals to provide the information they need to take action.

If you have questions about serving as a federal whistleblower, below you will find an overview of the AML Whistleblower Program. We also encourage you to schedule a free consultation at Oberheiden P.C. This consultation is 100% confidential, and our senior attorneys can provide the advice and insights you need to make informed decisions about your next steps.

AML Whistleblower Program: The Basics

The AML Whistleblower Program is one of the federal government’s newest whistleblower programs. Congress established the program in 2021 with the enactment of the Anti-Money Laundering Act (AMLA), and expanded it through the Anti-Money Laundering Improvement Act (AMLIA) of 2022. Thanks to the AML Whistleblower Improvement Act, the program extends to monetary sanctions violations.

The primary focus of the AML Whistleblower Program is on ensuring financial institutions’ compliance with their anti-money laundering obligations. Just as the federal government relies on whistleblowers to come forward, it also relies on financial institutions to help safeguard the nation’s financial system and address concerns related to terrorist financing, organized criminal activity, and national security. With that said, the AML Whistleblower Program is extremely broad in scope. Whistleblowers can report violations involving suspect transactions, foreign accounts, and foreign interests within the United States—among a wide range of other issues.

To support the AML Whistleblower Program’s broad focus, Congress has authorized protections (and financial rewards) for whistleblowers who report violations of multiple federal statutes. Along with violations of the AMLA and AMLIA, these statutes include:

• Bank Secrecy Act (31 U.S.C. § 5311 et seq.)
• Foreign Narcotics Kingpin Designation Act (21 U.S.C. § 1901 et seq.)
• International Emergency Economic Powers Act (50 U.S.C. § 1701 et seq.)
• Trading With the Enemy Act (50 U.S.C. § 4301 et seq.)

Like all federal whistleblower programs, while the AML Whistleblower Program is designed to encourage individuals to come forward, it also establishes strict eligibility criteria for securing whistleblower status. Individuals seeking protection under the program must meet requirements including (but not limited to):

• Filing their complaint with FinCEN before the agency obtains relevant information from another source;
• Filing their complaint within the applicable statute of limitations;
• Disclosing a violation covered under the AML Whistleblower Program (if a violation is not covered, it may be possible to file a whistleblower complaint with another federal agency);
• Disclosing information obtained either first-hand or through independent analysis; and,
• Following FinCEN’s procedural requirements for submitting complaints under the AML Whistleblower Program.

Given the complexity of not only the federal anti-money laundering regime but also the AML Whistleblower Program itself, we strongly recommend that all prospective whistleblowers seek legal counsel before contacting FinCEN. Our lawyers have extensive experience representing federal whistleblowers and handling federal whistleblower cases at the DOJ, and we can use our experience to guide you forward.

Violations Covered Under the AML Whistleblower Lawsuit Program

What types of violations can current and former bank personnel and other individuals report to a law enforcement agency under the AML Whistleblower Program? Due to the breadth of the program, this list is extremely long. With this in mind, the following are just some representative examples of violations covered under the program:

• Failure to detect, prevent, or report money laundering
• Failure to file Currency Transaction Reports (CTRs)
• Failure to file Suspicious Activity Reports (SARs)
• Failure to meet other reporting requirements under the Bank Secrecy Act (BSA)
• Structuring transactions to avoid AML reporting requirements
• Processing or facilitating transactions structured to avoid AML reporting requirements
• Processing or facilitating transactions involving terrorist activity, organized criminal activity (including drug crimes), or threats to national security
• Processing or facilitating transactions involving violations of the Trading With the Enemy Act
• Non-compliance with the BSA’s Know Your Customer (KYC) requirements
• Non-compliance with sanctions against foreign nationals, organizations, or governmental entities

Again, these are just representative examples. If you work for (or previously worked for) a financial institution, accounting firm, or any other entity and became privy to information that you believe reflects any AML-related violation, you should not ignore what you know. While it is important that you preserve the information you have in your possession, you also need to be careful about copying or removing any data from your employer’s offices or devices. Our attorneys can advise you here as well; and, regardless of whether you decide to come forward, we can guide you step-by-step through the process of making sure you are protected.

Put our highly experienced team on your side

Dr. Nick Oberheiden

Founder

Attorney-at-Law

Lynette S. Byrd

Former DOJ Trial Attorney

Partner

Brian J. Kuester

Former U.S. Attorney

Hon. Kevin McCarthy

55th Speaker, U.S. House of Representatives (ret.)

Government Consultant

Mike Pompeo

Of Counsel

Former U.S. Secretary of State

John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara

Federal Appeals Attorney

Nicholas B. Johnson

Former Prosecutor

Roger Bach

Former Special Agent (DOJ)

Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen

Former Supervisory Special Agent (FBI)

Protections and Compensation for AML Whistleblowers

If you decide to come forward, you will be protected under the AMLA and AMLIA—provided that you meet FinCEN’s requirements. Whistleblowers are entitled to three main forms of protection under the AMLA Whistleblower Program:

1. Confidentiality

If you disclose your identity to the federal government, the government will protect your identity. While there are circumstances in which whistleblowers’ identities may be disclosed, these circumstances are very limited. If you hire an attorney to represent you, your attorney will work with the government on your behalf to ensure that your identity remains confidential by all means available.

2. Anonymity

The AML Whistleblower Program is one of the few federal whistleblower programs that allows for anonymous reporting. If you choose to remain anonymous, you will need to hire an attorney to file your complaint and work with FinCEN on your behalf.

3. Anti-Retaliation

In all cases, AML whistleblowers are protected against retaliation in their employment. Should your employer discern your identity, it will be prohibited from taking adverse employment action against you based on your decision to blow the whistle. If it violates this prohibition, you will be entitled to clear remedies under the AMLA and AMLIA.

What if You Have Information That Doesn’t Fall Under the AML Whistleblower Program?

Now, let’s say you have information about a violation of federal law that doesn’t fall under the AML Whistleblower Program. If you don’t qualify to file an AML whistleblower complaint with FinCEN, you may qualify to file a whistleblower complaint with another federal agency. At Oberheiden P.C., we also represent whistleblowers in cases under:

• CFTC Whistleblower Program
• DOJ Whistleblower Program
• IRS Whistleblower Program  
• SEC Whistleblower Program

FAQs: Filing an AML Whistleblower Lawsuit