FinCEN Whistleblower Award (January Update)

The Financial Crimes Enforcement Network (FinCEN) Accepts Complaints from Whistleblowers Who Report Anti-Money Laundering (AML) and Other Bank Secrecy Act (BSA) Violations

The Financial Crimes Enforcement Network (FinCEN) is a bureau of the U.S. Treasury Department and works closely with federal law enforcement agencies to investigate financial crimes. It is one of several federal authorities that accept whistleblower complaints, and it is one of only a handful of federal authorities that issue whistleblower awards. FinCEN handles whistleblower complaints under the Bank Secrecy Act (BSA), including primarily complaints involving anti-money laundering (AML) violations.

FinCEN’s whistleblower program offers strong whistleblower protections, ensuring that individuals who expose unlawful financial transactions can come forward safely, even when their disclosures relate to an existing investigation. When a whistleblower’s information that leads to an enforcement action is provided, they may qualify for significant awards, while the program’s anti-retaliation provisions safeguard them from any form of whistleblower retaliation by employers or financial institutions.

About FinCEN’s Whistleblower Award Program

FinCEN’s whistleblower award program has undergone (and, as of 2024, is continuing to undergo) a major overhaul in response to Congress’s amendment of the Anti-Money Laundering Act (AML Act) in 2020. While the AML Act spurred several changes, one of the most significant changes was to alter the process for determining FinCEN whistleblower awards. Under FinCEN’s outgoing whistleblower program regulations, the maximum whistleblower award was $150,000. Going forward, however, whistleblowers will be entitled to between 10 and 30 percent of any fines and other penalties FinCEN recovers in excess of $1 million.

This brings FinCEN’s whistleblower award program more in line with the other federal whistleblower award programs that are in place today. The U.S. Department of Justice (DOJ), Commodity Futures Trading Commission (CFTC), Securities Exchange Commission (SEC), and Internal Revenue Service (IRS) all calculate whistleblower awards as a percentage of the amount they recover as the result of a whistleblower’s complaint and assistance. This approach often results in significant whistleblower awards, with whistleblowers routinely receiving awards in excess of $1 million—and with many awards exceeding $10 million.

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When Whistleblower Complaints Filed with FinCEN Trigger Award Eligibility

But while the recent changes to FinCEN’s whistleblower award program bring the program more in line with other federal whistleblower programs in certain respects, there are still certain unique aspects that are important for prospective whistleblowers. For example, individuals who report AML violations and other violations of the Bank Secrecy Act internally may be eligible for FinCEN whistleblower awards—even if they do not also file a complaint with the bureau. Of course, as a practical matter, whistleblowers will still need to contact FinCEN in order to seek their awards, and working with an experienced whistleblower lawyer can be critical during this process.

The AML Act and FinCEN’s regulations also make clear that employees who serve in compliance roles may be eligible to receive whistleblower awards—even if they are required to report suspected violations as part of their job duties. However, those involved with preparing and filing Suspicious Activity Reports (SARs) must be extremely careful, as unauthorized disclosure of information contained in an SAR (or even the existence of an SAR) violates federal law. Here, too, experienced legal representation is critical; and, if you are thinking about blowing the whistle and seeking a FinCEN whistleblower award, we strongly encourage you to speak with one of our lawyers before moving forward.

In all cases, FinCEN whistleblowers must report “original information” to become eligible for awards. Broadly, “original information” is material non-public information that is unknown to FinCEN (or, in the case of internal reporting, is unknown to those to whom the information is reported). This generally means that a whistleblower must be the first to come forward with information that is sufficient to justify a FinCEN investigation and potential civil or criminal enforcement.

Seeking a FinCEN Whistleblower Award: Tips for Bank Personnel and Other Prospective Whistleblowers

If you believe that you have original information about an AML violation or any other violation of the Bank Secrecy Act and are thinking about blowing the whistle, it is important that you make informed decisions and take appropriate action promptly. With this in mind, here are some important tips to consider:

• You Must Be Very Careful About Copying or Removing Sensitive Records or Data – While this is true for all employees, it is especially true for employees of banks and other financial institutions. To ensure compliance with federal law and any applicable employment policies and procedures, you must be careful to ensure that you do not improperly copy or remove any sensitive records or data. Our lawyers can explain what you should (and shouldn’t) do when preparing to serve as a FinCEN whistleblower. 
• You Must Be Very Careful to Maintain SAR Compliance – As noted above, you must also be very careful to maintain SAR compliance. Improperly disclosing SAR information is a criminal offense that carries steep penalties. Our lawyers can assist you here as well. 
• You Must Ensure that You Report Your Concerns Through the Appropriate Channels – Whether you are considering filing a report internally or externally, you must ensure that you go through the appropriate channels. Regarding external reporting, FinCEN is one of several federal authorities that accept whistleblower complaints (and issue whistleblower awards), and contacting a different federal authority may be necessary in some cases. 
• The Amount of Your FinCEN Whistleblower Award Will Be Based, in Part, On the Amount of Assistance You Provide – If you become eligible to receive a FinCEN whistleblower award, the amount of your award will be based, in part, on the amount of assistance you provide. FinCEN whistleblower awards can range from 10 to 30 percent of the fines and other penalties recovered—and, the more assistance you provide, the larger your percentage should be. 
• You Should Talk to a Whistleblower Lawyer As Soon As Possible – To ensure that you take all of the necessary steps to protect yourself, properly report the original information you have in your possession, and establish your eligibility for a FinCEN whistleblower award, you should talk to a whistleblower lawyer as soon as possible. At Oberheiden P.C., we represent federal whistleblowers nationwide, and we provide our representation at no out-of-pocket cost. 

FAQs: Seeking a FinCEN Whistleblower Compensation Award