Bank Secrecy Act (BSA) Whistleblower Lawsuit Attorney

Our Whistleblower Lawyers Report Bank Secrecy Act Violations to the Federal Government

The Bank Secrecy Act (BSA) is a little-known statute that plays an outsized role in the federal government’s efforts to protect consumers and the integrity of the U.S. financial system. It also plays a critical role in the federal government’s ongoing fight against organized crime, terrorism, and other threats to national security. As a result, if you have information about a violation of the Bank Secrecy Act, it is important that you consider coming forward. Our law firm is here to help.

Blowing the Whistle on Bank Secrecy Act Violations

The federal whistleblower provisions pertaining to disclosure of Bank Secrecy Act violations changed in 2021. This is when the BSA’s whistleblower provisions were replaced by the government’s new AML program, which was established under the Anti-Money Laundering Act of 2020 (AMLA), part of the National Defense Authorization Act (NDAA). This change led the Commodity Futures Trading Commission (CFTC) to release the following statement:

“The Whistleblower Office of the [CFTC] is issuing this alert to inform members of the public about how they may make themselves eligible for both financial awards and certain protections while helping stop those who violate the Commodity Exchange Act by failing to comply with the Bank Secrecy Act (BSA) or related regulations.”

The Financial Crimes Enforcement Network (FinCEN) and U.S. Securities and Exchange Commission (SEC) handle whistleblower cases under the Bank Secrecy Act as well. Whistleblowers may also have the option of contacting the U.S. Department of Justice (DOJ) in some cases. While these federal authorities all have their own specific law enforcement priorities, they are all committed to enforcing BSA compliance, and they often work together to target individuals and organizations suspected of serious, systematic, and wide-reaching violations.

Individuals who report Bank Secrecy Act violations to the CFTC, DOJ, FinCEN, or SEC through the appropriate channels can qualify as federal whistleblowers—and, by doing so, they can make themselves eligible for both protections and financial compensation. If you have questions about reporting a BSA violation to the federal government, our whistleblower lawyers can explain what you need to know. If you decide to blow the whistle, we can help you report the BSA violation to the appropriate federal authority, and we can represent you at no out-of-pocket cost.

Examples of BSA Violations Whistleblowers Can Report to the CFTC, DOJ, FinCEN, or SEC

The Bank Secrecy Act is a broad and complex statute that imposes onerous obligations for financial institutions and other organizations, including responsibilities related to preventing sanctions violations. However, this is not an excuse for noncompliance. To the contrary, federal authorities expect organizations to rely on the guidance that is available to develop a custom-tailored, systematic, and effective overall compliance program—and they expect organizations to be prepared to affirmatively demonstrate compliance upon request.

Yet, Bank Secrecy Act violations remain commonplace in the banking, investing, and financial services sectors, including failures involving foreign assets control obligations and improper handling of cash transactions under the BSA. Whistleblowers can—and should—report violations of all types to the appropriate federal authorities. Some examples of violations that may warrant whistleblower lawsuit include:

• Failure to implement a BSA compliance program 
• Failure to adhere to any of FinCEN’s “pillars” of BSA compliance 
• Failure to generate, retain, or file currency transaction reports (CTRs)
• Failure to generate, retain, or file suspicious activity reports (SARs)
• Failure to maintain effective “know your customer” (KYC) protocols
• Inadequate efforts to detect, prevent, or report consumer fraud
• Inadequate efforts to detect, prevent, or report market corruption
• Inadequate supervision of officers’, employees’, or agents’ handling of accounts 
• Recordkeeping violations 
• Systematic or recurring violations of technical BSA requirements 

If you have inside information about any documented or suspected violation of the Bank Secrecy Act or related sanctions laws that could trigger civil or criminal penalties, our lawyers can help you make an informed decision about whether to come forward. We can explain what you need to know about collecting and preserving records to support your BSA whistleblower lawsuit, and we can walk you step-by-step through the process of serving as a whistleblower.

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 Available to Bank Secrecy Act Whistleblowers

Under the federal AML whistleblower program (often also referred to as FinCEN’s whistleblower program), individuals who report Bank Secrecy Act violations through the appropriate channels are entitled to confidentiality and anti-retaliation protections. Bank Secrecy Act whistleblowers will also be eligible to receive financial rewards in many cases.

1. Confidentiality (or Anonymity)

If you come forward as a Bank Secrecy Act whistleblower, the federal government will protect your identity to the fullest extent possible under the law. In most circumstances, this means that your identity will not be disclosed during (or after) the whistleblower process. There are only limited circumstances in which federal authorities are required to disclose whistleblowers’ identities—and these circumstances don’t come up in most cases.

Our Bank Secrecy Act whistleblower lawyers can help protect your identity as well; and, if you so choose, we can also file your BSA whistleblower lawsuit anonymously on your behalf. Here too, we can help you make an informed decision about how to proceed. In any case, we will not disclose your identity or any information you share with us unless you expressly authorize us to do so.

2. Anti-Retaliation Protection

Individuals who qualify as Bank Secrecy Act whistleblowers under the federal AML whistleblower program are also entitled to protection against retaliation in their employment. In the event that your employer discerns your identity, it will be prohibited by federal law from retaliating against you.

This does not mean that you are entitled to keep your job no matter what. However, it does mean that your employer will be prohibited from firing you (or demoting you or reducing your pay) based on your decision to blow the whistle. If your employer retaliates against you for reporting illegal conduct, our lawyers will be prepared to take appropriate legal action on your behalf.

3. Bank Secrecy Act Whistleblower Rewards

The AML whistleblower program also includes provisions for whistleblower rewards in Bank Secrecy Act cases. Generally, if you qualify as a Bank Secrecy Act whistleblower and assist the federal government with recovering $1 million or more, you will be entitled to a reward of between 10% and 30% of the amount recovered. It is not unusual for Bank Secrecy Act cases to involve tens or hundreds of millions of dollars in potential monetary penalties, so whistleblowers who come forward through the appropriate channels will be eligible to receive rewards (if the government’s enforcement action is successful) in many cases.

FAQs: Serving as a Bank Secrecy Act Whistleblower