FinCEN Launches Dedicated Webpage for Whistleblower Tips
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) , launched a new dedicated webpage designed to confidentially receive whistleblower tips concerning fraud, money laundering, and violations of U.S. Sanctions.
The move, announced in a press release, signals a heightened focus on leveraging insider information to combat financial crimes and safeguard the nation’s financial system. FinCEN’s Office of the Whistleblower is now accepting tips related to violations and conspiracies involving the Bank Secrecy Act, U.S. Sanctions programs, and other critical laws protecting U.S. National security.
Individuals who submit information that leads to a successful enforcement action may be eligible for a financial reward. According to information available from Kohn, Kohn & Colapinto, awards can range from 10% to 30% of the monetary sanctions collected in enforcement actions exceeding $1 million.
What Does FinCEN Do?
FinCEN, a bureau of the U.S. Department of the Treasury, plays a central role in preventing and combating financial crimes. The agency’s responsibilities include implementing and enforcing regulations to counter money laundering, the financing of terrorism, and large-scale foreign corruption. It also supports initiatives like the Kleptocracy Asset Recovery Rewards Program, which aims to recover stolen assets linked to foreign government corruption.
FinCEN works in collaboration with other federal regulators, including the Department of Justice, the U.S. Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC). The agency relies on information provided by banks and other financial institutions to initiate criminal, civil, and forfeiture actions.
How Does OFAC Factor In?
The Office of Foreign Assets Control (OFAC), also under the Treasury Department’s umbrella, is responsible for administering and enforcing economic and trade sanctions based on U.S. National security goals and foreign policy decisions. OFAC operates under laws such as the International Emergency Economic Powers Act and the Trading With the Enemy Act.
Who Can Be a Whistleblower?
A wide range of individuals may be eligible to submit tips and potentially receive an award. This includes bank employees – such as tellers, loan officers, and compliance officers – as well as former employees and customers or clients who possess firsthand knowledge of suspicious activity, according to Kohn, Kohn & Colapinto.
Submitting a Tip
FinCEN encourages potential whistleblowers to submit information as quickly as possible, providing detailed and specific documentation to support their claims. The new dedicated webpage provides a confidential avenue for submitting these tips.
The launch of this webpage underscores FinCEN’s commitment to utilizing all available tools to combat financial crimes and protect the integrity of the U.S. Financial system. The agency’s primary goal remains safeguarding the financial system by combating money laundering, sanctions evasion, fraud, corruption, and other illicit financial activities.
More information on FinCEN’s whistleblower program and instructions on how to submit tips can be found on FinCEN’s website.
