By PAUL O’DONOGHUE, Senior Correspondent
THE U.S. Treasury has proposed a rule to pay whistleblowers up to 30% of penalties collected in enforcement cases, as part of a new framework to strengthen reporting of financial crime.
Under the proposal, FinCEN, the Treasury’s AML unit, would offer awards of 10% to 30% of monetary penalties collected in successful enforcement actions.
These cases must result from tips that lead to action by the Treasury or the Department of Justice.
The Financial Crimes Enforcement Network (FinCEN) said it has submitted a Notice of Proposed Rulemaking to the Federal Register. The proposal sets out how it will fully implement its whistleblower programme.
It aims to encourage individuals to report suspected violations of the Bank Secrecy Act, U.S. sanctions and other laws linked to illicit finance.
“As promised, Treasury will reward whistleblowers who provide timely, actionable information on fraud, sanctions violations, and other significant illicit finance activity,” said Treasury Secretary Scott Bessent.
He added: “President Trump has been clear that Americans have a right to know that their tax dollars are not being diverted to fund acts of global terror. Or to fund luxury cars for fraudsters.”
“At Treasury, we follow the money. We strongly encourage individuals to come forward with credible tips to help safeguard our financial system,” Bessent said.
FinCEN said the proposal also sets procedures for whistleblowers. These are to ensure that they share information about potential violations “in a timely and secure manner”.
The agency added that the framework includes “protections for whistleblowers who provide information” to the programme.
FinCEN said the rule would complete implementation of legislation introduced in 2020 and 2022. The agency already accepts tips. It recently launched an online submission portal, available [HERE].
The public can submit comments within 60 days of publication in the Federal Register.
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