Sanctions Evasion Whistleblower Reward

Our Senior Lawyers Explain the Eligibility Requirements for OFAC Sanctions Evasion Whistleblower Rewards

Individuals who report violations of Office of Foreign Assets Control (OFAC) sanctions are eligible to receive financial rewards in many cases. If you are interested in seeking a reward through a federal whistleblower program for sanctions evasion, our senior lawyers can walk you through what you need to know. With a team that includes former U.S. Department of Justice (DOJ) prosecutors, each experienced as an AML whistleblower lawyer, we are well-versed in the requirements for establishing whistleblower reward eligibility—and, if you are eligible to seek a reward, we can work with the federal government on your behalf.

There are specific requirements for establishing whistleblower reward eligibility under the AML whistleblower program; and, if you become eligible to receive a reward, the amount of your reward will depend on several factors. As a result, it is critical to ensure that you are making informed decisions throughout the process of serving as a sanctions evasion whistleblower. This page provides a general overview of the eligibility criteria and the factors involved in calculating sanctions evasion whistleblower rewards. For legal advice custom-tailored to the information you have in your possession, contact us for a free and confidential consultation.

Eligibility Criteria for Seeking a Sanctions Evasion Whistleblower Reward

Not just anyone is eligible to receive a sanctions evasion whistleblower reward. Instead, there are specific eligibility criteria under federal law. Specifically, under the whistleblower provisions of the Anti-Money Laundering Act of 2020 (AMLA), which was enacted as part of the National Defense Authorization Act, and Anti-Money Laundering Whistleblower Improvement Act (AMLWIA), the eligibility criteria include:

1. Qualifying to Serve as a Sanctions Evasion Whistleblower

One of the first steps toward seeking a reward is determining if you qualify to serve as a sanctions evasion whistleblower. While most sanctions evasion whistleblowers are bank personnel and employees of other entities subject to the Bank Secrecy Act, other individuals may qualify to serve as sanctions evasion whistleblowers as well.

Broadly, there are two criteria that can disqualify individuals from federal whistleblower reward eligibility. If you were directly involved in the violation at issue or if you work for (or previously worked for) a federal regulatory or law enforcement agency and learned about the violation through your employment, you may not qualify to serve as a whistleblower. With that said, if either of these apply to you, we still strongly recommend speaking with a whistleblower lawyer before you make any decisions about what to do (or what not to do) with the information you have in your possession.

2. Engaging Legal Counsel or Disclosing Your Identity to the Government

If you decide to blow the whistle on an OFAC sanction violation, one of the next decisions you will need to make is whether to disclose your identity to the government. If you disclose your identity, the government will protect it to the fullest extent possible under federal law. If you choose not to disclose your identity, you can serve as a whistleblower anonymously; however, you will need a legal representative to seek a whistleblower reward.

With that said, we strongly advise working with a lawyer regardless of whether you intend to come forward confidentially or anonymously. At Oberheiden P.C., we have extensive experience both representing federal whistleblowers and handling whistleblower cases at the DOJ. We can use our experience to help you make informed decisions, work with the government effectively on your behalf to report money laundering or other violations, and assist with maximizing the amount of your whistleblower reward if you become eligible to receive one.

3. Disclosing Original Information About a Violation of OFAC Sanctions

To be eligible to receive a financial reward, you must disclose original information about a violation of OFAC sanctions, such as those imposed under International Emergency Economic Powers Act. To qualify as “original,” the information you disclose must:

• Be derived from your independent knowledge or analysis; 
• Not presently be known to the U.S. Treasury Department or the DOJ; and, 
• Not be exclusively derived from a judicial hearing, administrative hearing, or government report or investigation. 

As a prospective whistleblower, you won’t necessarily know whether the Treasury’s Office or the DOJ already has access to information about the money laundering, sanctions violation, or other violation that you are prepared to disclose. When you engage Oberheiden P.C. to represent you, our lawyers can interface with the government’s lawyers proactively to determine if you will be able to establish eligibility for a sanctions evasion whistleblower reward.

4. Providing Accurate Information to the Treasury Department or DOJ (or Both)

If the information you disclose triggers a government investigation, you will be required to provide accurate information to the Treasury Department and/or the DOJ throughout the process. While it is up to you to decide how much you are willing to assist with the government’s investigation (more on this below), providing false, inaccurate, or misleading information will disqualify you from reward eligibility.

5. Assisting with a Successful OFAC Sanctions Enforcement Action

Finally, to receive a reward as a sanctions evasion whistleblower, the information you disclose must lead to a successful enforcement action that results in the recovery of $1 million. If the government recovers at least $1 million as a result of your disclosure (and you are otherwise eligible), you will be entitled to between 10% and 30% of the amount recovered for disgorgement, penalties, and interest.

Factors that Will Determine the Amount of Your Whistleblower Reward

As we just mentioned, sanctions evasion whistleblower rewards can range from 10% to 30% of the amount the government recovers. This is a wide range, and the specific percentages awarded in whistleblower cases depend on a variety of different factors. These factors include (but are not limited to):

• The volume of original information disclosed;
• The materiality of the original information disclosed;
• The severity of the OFAC sanction violation(s) at issue;
• The amount of additional information and cooperation provided during the government’s investigation; and,
• The amount of disgorgement, penalties, and interest recovered through the government’s enforcement action. 

When we represent whistleblowers who are interested in pursuing financial rewards, we work closely with our clients and the government to help maximize our clients’ reward eligibility. While there are no guarantees, we have a clear understanding of what federal investigators and prosecutors expect from whistleblowers, and we are confident in our ability to put our clients in a favorable position to receive a reward on the upper end of the 10% to 30% range.

FAQs: Establishing Your Eligibility for a Sanctions Evasion Whistleblower Reward