Sanctions Evasion Whistleblower

Whistleblower Lawyers for Individuals Seeking to Report Violations of OFAC Sanctions

**Attorney Lynette Byrd**
Whistleblower Team Lead
Former DOJ Attorney

**Attorney Nick Oberheiden**
Whistleblower Team Lead

**Attorney Brian Kuester**
Whistleblower Team
Former U.S. Attorney and District Attorney

The Office of Foreign Assets Control (OFAC) administers various sanctions programs, all of which serve three main goals. The first is to facilitate the federal government’s foreign policy objectives focused on protecting the United States’ interests with respect to other countries around the globe. The second is to protect the integrity of the U.S. financial system by restricting the sources of funds used to conduct transactions with U.S. parties and invest on U.S. soil. The third is to protect national security by deterring and uncovering terrorist financing and other illicit financial activities.

Each of these is fundamentally important on its own; and, combined, they make it essential for OFAC sanctions evasion whistleblowers to come forward.

If you have information about a violation of OFAC sanctions, you may be eligible to serve as a sanctions evasion whistleblower. Not only do sanctions evasion whistleblowers play a critical role in helping the federal government achieve the goals we just discussed, but they are also entitled to whistleblower rewards in many cases. If you have questions about coming forward, our whistleblower lawyers can help you make an informed decision; and, if you decide to come forward, we can communicate with the federal government on your behalf.

Sanctions Evasion Whistleblower Complaints (and Rewards) Under the AMLA

Individuals who have information about violations of OFAC sanctions can come forward under the federal Anti-Money Laundering Act of 2020 (AMLA). In 2023, Congress amended the AMLA through the National Defense Authorization Act, enhancing the federal government’s ability to enforce the Bank Secrecy Act (BSA), other sanctions laws, and other federal anti-money laundering (AML) laws and regulations. This was a critical step toward facilitating the discovery and prosecution of OFAC sanction violations—because sanction violations and money laundering often go hand-in-hand.

Along with enhancing the federal government’s ability to enforce existing AML laws and regulations through amendments to the AMLA, Congress also enhanced the protections (and rewards) offered to AML whistleblowers through the Anti-Money Laundering Whistleblower Improvement Act (AMLWIA). This law has three key provisions that are pertinent to sanctions evasion whistleblowers:

Whistleblower Protections and Rewards for Reporting Sanctions Evasion – Whistleblowers can report violations involving sanctioned entities under the International Emergency Economic Powers Act (IEEPA), the Foreign Narcotics Kingpin Designation Act (FNKDA), and Sections 5 and 12 of the Trading with the Enemy Act (TWEA). All of these serve as sources of statutory authority for OFAC’s sanctions programs.
The Financial Integrity Fund (FIF) – The U.S. Treasury Department has established a Financial Integrity Fund (FIF) that is specifically intended to serve as a funding source for sanctions evasion whistleblower rewards. The fund contains monies collected through successful sanctions evasion enforcement actions that result from whistleblower complaints.
Minimum Sanctions Evasion Whistleblower Rewards – When sanctions evasion whistleblowers help the federal government pursue successful enforcement actions under the IEEPA, FNKDA, or TWEA that result in the recovery of $1 million or more, they are entitled to a minimum whistleblower reward of 10% of the amount recovered. However, sanctions evasion whistleblower rewards can be as high as 30% of the amount recovered.

Another key feature of the AMLA is that it allows whistleblowers to come forward anonymously. While the government protects whistleblowers’ identities to the fullest extent possible under the law, if you choose to come forward anonymously, you will remain eligible for a reward as long as you have legal representation.

While every case is unique, the amounts at issue in sanctions evasion cases are often substantial—far in excess of the minimum $1 million required for whistleblower reward eligibility. A company allowing sanctioned entities to conduct prohibited transactions can face not only disgorgement of funds obtained in violation of the law, but also interest and penalties. Penalties alone can climb into the millions of dollars in many cases. When you schedule a free and confidential consultation at Oberheiden P.C., one of our senior lawyers will comprehensively examine the circumstances of your case so that you can decide whether to serve as a sanctions evasion whistleblower.

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)

Qualifying as a Sanctions Evasion Whistleblower Under the AMLA

As is the case with all federal whistleblower programs, there are qualifications for serving as a sanctions evasion whistleblower. These qualifications include (but are not limited to):

1. Original Source of Information About an OFAC Sanction Violation

To qualify as a sanctions evasion whistleblower, you must serve as the “original” source of information about an OFAC sanction violation. This generally means that: (i) you must be prepared to disclose information derived from your independent knowledge or analysis; and, (ii) the information you are prepared to disclose is not already known to the U.S. Treasury Department or the U.S. Department of Justice (DOJ).

2. Coming Forward Through the Appropriate Channels

Sanctions evasion whistleblowers seeking to help the government combat money laundering and other illicit activities must come forward through the appropriate channels. Generally, this means that they must provide their original information either to the U.S. Treasury Department or the DOJ. While whistleblowers can also make disclosures to their employers in some cases, we strongly recommend consulting with a lawyer before you file an internal report or complaint.

3. Not Being Disqualified Due to Involvement, Job Duties, or Other Reasons

Federal laws disqualify certain individuals from serving as sanctions evasion whistleblowers. These include individuals who have been found guilty of involvement in the violation at issue (and who still have original information in their possession) as well as individuals who come into possession of original information in the normal course of their job duties with a covered regulatory or law enforcement agency.

We will keep all information you share with our firm strictly confidential, and we will not disclose any information to the federal government unless you expressly authorize us to do so. If you decide to come forward anonymously, we will not disclose your identity at any point in the process. You do not need to be committed to coming forward when you contact us. Our role initially is to help you make an informed decision—and it is ultimately up to you whether you are prepared to serve as a sanctions evasion whistleblower.

FAQs: Reporting Sanctions Evasions to the Federal Government

How Do I Report an OFAC Sanction Violation to the Federal Government?

Whistleblowers can report OFAC sanctions violations to either the U.S. Treasury Department or the U.S. Department of Justice (DOJ). The Treasury and the DOJ each have their own substantive and procedural requirements for submitting whistleblower complaints—and it is imperative that whistleblowers meet these requirements to establish their eligibility for both protection against retaliation and financial compensation. At Oberheiden P.C., our senior lawyers—including our former DOJ prosecutors—have extensive experience representing federal whistleblowers, and we can provide advice and representation at every stage of the process.

Are OFAC Sanctions Whistleblowers Eligible to Receive Financial Rewards?

OFAC sanctions whistleblowers are eligible to receive financial rewards if they help the government recover $1 million or more. The first step toward seeking a whistleblower reward is to ensure that you secure protected whistleblower status. Our attorneys can assist you; and, if you become eligible to receive a whistleblower reward as the result of a successful enforcement action, we can work with the government to secure your reward on your behalf.

Are OFAC Sanctions Whistleblowers Entitled to Protection Against Retaliation?

OFAC sanctions whistleblowers are entitled to protection against retaliation in their employment. If you qualify as a sanctions evasion whistleblower, your employer will be prohibited from retaliating against you if it discovers your identity—and you will be entitled to damages and/or other remedies if it retaliates unlawfully. However, whistleblowers are entitled to strict confidentiality (and anonymity if they choose); so, in most cases, whistleblowers’ identities will remain unknown unless they choose to come forward publicly.

Will I Need to Disclose My Identity if I Blow the Whistle on OFAC Sanctions Evasion?

OFAC sanctions evasion whistleblowers have the option to come forward anonymously. If you choose not to disclose your identity to the federal government, you will need to engage a law firm to work with the government on your behalf. This includes working with the government on your behalf to claim your reward if you become eligible to receive one.

How Can I Confirm My Eligibility to Serve as an OFAC Sanctions Evasion Whistleblower?

Our senior lawyers will work with you one-on-one to determine if you are eligible to participate in the AML whistleblower program as an OFAC sanctions whistleblower. This is completely confidential, and it costs you nothing. If you are eligible to serve as a whistleblower and you decide to come forward, we will continue to protect your identity, and our legal fees (if any) will be paid out of the government’s recovery if your whistleblower complaint leads to a successful enforcement action.