Understanding the AML & FCPA Whistleblower Program

Money Laundering

Processing funds from illegal activities to disguise their origin, such as through shell companies, layered transactions, or offshore accounts.

Failure to Maintain AML Compliance Programs

Financial institutions failing to establish or maintain effective AML programs, including customer due diligence, suspicious activity monitoring, and reporting systems.

Failure to File Suspicious Activity Reports (SARs)

Banks and other covered entities not filing required SARs for suspicious transactions.

Bribery of Foreign Officials

Offering, promising, or paying anything of value to foreign government officials to obtain or retain business, in violation of the FCPA.

False or Inaccurate Books and Records

Maintaining inaccurate corporate books, records, or accounts to conceal improper payments or transactions.

Under the AML and FCPA programs, whistleblowers may receive 10–30% of the monetary sanctions collected in cases where sanctions exceed $1 million. Awards may also be available for “related actions” brought by other U.S. or foreign enforcement agencies based on the same information.

The AML Whistleblower Improvement Act ensures that qualifying whistleblowers receive mandatory awards, eliminating the discretionary nature of earlier versions of the program.Whistleblower Confidentiality and Protections

Both the AML and FCPA whistleblower frameworks guarantee strong confidentiality protections. Whistleblowers may submit information anonymously if represented by an attorney.
Anti‑retaliation protections prohibit employers from firing, demoting, suspending, harassing, or otherwise discriminating against whistleblowers. Remedies for retaliation may include:

• Reinstatement
• Double back pay plus interest
• Compensation for litigation costs and attorney’s fees

Other Whistleblower Programs

In addition to the IRS Tax Whistleblower Program, several other federal and international whistleblower programs provide significant rewards and protections:

SEC Securities Whistleblower Program

Rewards whistleblowers for reporting violations of federal securities laws, such as insider trading, accounting fraud, and market manipulation.

CFTC Commodities Whistleblower Program

Encourages reporting of misconduct in the commodities, futures, options, and swaps markets.

FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act) Program

Targets fraud affecting federally insured financial institutions, including mortgage and loan origination fraud.

IRS Tax Whistleblower Program

Addresses significant tax underpayments and tax fraud, rewarding whistleblowers with a share of the recovery.

International Whistleblower Claims

Allows foreign whistleblowers to qualify for U.S. whistleblower program awards in cases with cross‑border misconduct tied to U.S. markets or entities.