Introduction
Financial crime—money laundering, sanctions evasion, terrorist financing, and violations of anti-money laundering laws—poses a profound threat to the integrity of the United States financial system and to national security. For decades, federal regulators and law enforcement agencies have relied on financial institutions to detect and report suspicious activity, but the scale and sophistication of modern illicit finance has made it clear that inside information from knowledgeable individuals is equally essential. Recognizing this, Congress created the FinCEN Whistleblower Program as part of the Anti-Money Laundering Act of 2020 (“AMLA 2020”), which was enacted as Division F of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021.
The program, administered by the Financial Crimes Enforcement Network (FinCEN)—a bureau of the United States Department of the Treasury—offers meaningful financial rewards to individuals who voluntarily provide original information about violations of the Bank Secrecy Act (BSA) or the laws and regulations administered by FinCEN. It is modeled in significant respects on the highly successful whistleblower programs operated by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), both of which have paid hundreds of millions of dollars in awards to tipsters and have generated billions in enforcement recoveries.
This overview is designed to help you understand how the FinCEN Whistleblower Program works, who is eligible to participate, what types of information qualify for an award, how much you could receive, what protections are available to you, and how the submission process unfolds. Because the rules governing this program are detailed and the stakes—both financial and personal—can be substantial, we strongly encourage anyone considering making a submission to consult with an attorney experienced in whistleblower law before doing so.
Legislative Background and the Role of FinCEN
FinCEN was established in 1990 and became a bureau of the Treasury Department in 2003. Its primary mission is to safeguard the financial system from illicit use, combat money laundering, and promote national security through the collection, analysis, and dissemination of financial intelligence. FinCEN administers the Bank Secrecy Act—the principal U.S. anti-money laundering statute—which requires financial institutions to keep records and file reports that are useful to law enforcement investigations.
Before AMLA 2020, no formal monetary reward mechanism existed specifically for individuals who reported BSA violations or related financial crimes to FinCEN. The SEC Whistleblower Program, created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and the CFTC Whistleblower Program, created by the same legislation, had demonstrated that financial incentives dramatically increase the volume and quality of tips received by regulators. Congress concluded that a comparable program for anti-money laundering and BSA violations was both necessary and appropriate.
AMLA 2020 directed FinCEN to establish a whistleblower program and fund, and to promulgate implementing regulations. After a notice-and-comment rulemaking process, FinCEN finalized its implementing rules, creating a structured framework that governs every aspect of the program from eligibility through award payment. The regulations are codified in the Code of Federal Regulations and are closely tracked against the statutory text of AMLA 2020.
What Violations Can Be Reported?
The FinCEN Whistleblower Program covers original information relating to violations of the Bank Secrecy Act and any regulation promulgated under the BSA. In practical terms, this sweeps in a broad range of financial crimes and compliance failures, including but not limited to the following categories.
Money laundering is among the most commonly reported categories. This encompasses efforts by individuals, businesses, shell companies, or financial institutions to conceal the illegal origin of proceeds of crime by moving funds through layers of financial transactions. Violations can involve domestic or foreign predicate offenses—drug trafficking, fraud, bribery, human trafficking, and many others—and the laundering activity itself can occur through banks, money services businesses, real estate transactions, digital asset exchanges, and other financial channels.
Failures to file or falsification of required BSA reports are also squarely within the program’s scope. Financial institutions are required to file Suspicious Activity Reports (SARs) when they detect transactions that suggest illegal activity, and Currency Transaction Reports (CTRs) for cash transactions above certain thresholds. Employees or insiders who are aware that an institution is systematically failing to file required reports, or is filing knowingly false or misleading reports, may have highly valuable information to provide.
Sanctions violations and evasion of export controls often intersect with BSA enforcement because transactions that move money in violation of sanctions programs administered by the Office of Foreign Assets Control (OFAC) may also involve BSA violations. FinCEN coordinates closely with OFAC, and whistleblower information implicating both regulatory regimes may result in larger aggregate sanctions and potentially larger awards.
Violations by money services businesses (MSBs), which include check cashers, money transmitters, currency dealers, issuers of money orders, and prepaid card providers, are another significant area. MSBs are required to register with FinCEN, implement anti-money laundering programs, and file SARs and CTRs, but compliance failures are common. The rapidly growing digital asset sector has also drawn increasing FinCEN scrutiny, and violations by cryptocurrency exchanges, wallet providers, and other virtual asset service providers are reportable under the program.
Foreign bank and financial account reporting violations under the Bank Secrecy Act—commonly known as FBAR violations—are also within scope. U.S. persons with financial interests in or signature authority over foreign financial accounts exceeding $10,000 at any point during the calendar year must file annual FinCEN Form 114. Willful failures to file, or the filing of false FBARs, can carry severe civil and criminal penalties, and insiders with knowledge of FBAR violations may be able to bring them to FinCEN’s attention through the whistleblower program.
Eligibility to Participate
The FinCEN Whistleblower Program is broadly available, but certain categories of individuals are excluded or face significant limitations. Understanding whether you are eligible before submitting is critical, because an ineligible submission may not only fail to produce an award but could also raise legal complications of its own.
Most individuals with original information about BSA violations are eligible to submit a tip, including current and former employees of financial institutions, their customers or clients, business partners, contractors, accountants, attorneys (subject to applicable professional responsibility rules), compliance professionals, and members of the general public. Non-U.S. citizens and residents located outside the United States are generally eligible to participate, which reflects the global nature of money laundering and financial crime.
However, certain individuals are categorically excluded from receiving an award. Members of law enforcement and federal, state, local, or foreign government agencies acting in their official capacity are not eligible. Individuals who obtained the information by means that would violate federal or state criminal law—for example, through unauthorized computer access or theft of documents—may be ineligible or may have their award reduced or denied. Individuals who are convicted of a criminal violation related to the conduct they are reporting are ineligible for an award.
Compliance and audit personnel at financial institutions occupy a particularly nuanced position. AMLA 2020 and the implementing regulations permit these individuals to submit tips under certain circumstances—for example, if the institution has been informed of the potential violation and has failed to address it within a reasonable period, or if the whistleblower has a reasonable basis to believe that reporting to FinCEN is necessary to prevent the institution from destroying evidence or engaging in conduct that would impede an investigation. Because the rules in this area are complex, compliance professionals should consult experienced whistleblower counsel before making any submission.
Co-conspirators or individuals who participated in the very violations they are reporting may still be eligible for an award in some circumstances, though FinCEN retains discretion to reduce or deny awards based on a claimant’s culpability. The fact of participation does not automatically disqualify a claimant, but it is a factor that will weigh against the full maximum award and could have implications for the claimant’s own civil and criminal exposure—another reason why retaining legal counsel is essential.
What Qualifies as “Original Information”?
A central requirement for eligibility is that the information submitted must constitute “original information” within the meaning of AMLA 2020 and the implementing regulations. This term is carefully defined and serves as a threshold gatekeeping requirement.
Original information must be derived from the claimant’s independent knowledge or independent analysis. Independent knowledge means factual information that the claimant knows from their own direct experience, as opposed to information obtained from publicly available sources or from a media report, government investigation, or judicial or administrative hearing. Independent analysis means an examination or evaluation by the claimant that reveals information that is not generally known or available to the public, even if the underlying raw data used in the analysis is publicly available.
The information must not be known to FinCEN from any other source at the time of the submission, unless the claimant is the original source of that information. Importantly, original information can still qualify even if FinCEN is already conducting an investigation into related conduct, so long as the claimant’s specific information is not already in FinCEN’s possession and meaningfully advances the investigation or enforcement action.
Information obtained through legally privileged communications presents a particularly sensitive issue. Communications protected by the attorney-client privilege or the work-product doctrine are generally not eligible to serve as original information, and an attorney who submits such privileged information may face professional discipline. The rules are complex in this area, and any person in possession of information obtained through privileged communications should seek independent legal advice before making any submission to FinCEN.
Award Amounts: How Much Can You Receive?
The potential financial rewards available under the FinCEN Whistleblower Program are substantial and are intended to incentivize individuals to come forward with high-quality, actionable information about serious violations. Understanding the structure of awards is essential for any potential claimant.
Under AMLA 2020, if original information provided by a whistleblower leads to a successful enforcement action that results in sanctions exceeding $1,000,000 (one million dollars), FinCEN is required to pay the whistleblower an award of between 10% and 30% of the total monetary sanctions collected. This threshold and percentage range mirror the structure of the SEC and CFTC whistleblower programs, which have proven highly effective at generating substantial awards.
The precise award percentage within the 10% to 30% range is determined by FinCEN based on several factors. Factors that may increase the award percentage include the significance and quality of the information provided, the degree to which the information contributed to the success of the enforcement action, whether the claimant reported promptly upon becoming aware of the violation, and the claimant’s cooperation throughout the investigation and enforcement process. Factors that may decrease the award percentage include the claimant’s culpability in the underlying violation, any unreasonable delay in reporting, and any interference with the investigation by the claimant.
It is important to understand that the award is calculated based on the sanctions that are actually collected, not merely assessed or imposed. In large enforcement actions, the gap between assessed and collected sanctions can be significant. FinCEN may pay awards incrementally as collections are made, and claimants may be eligible for additional award payments as further collections occur in the same action.
Where multiple individuals jointly submit original information, or where related submissions by different individuals all contribute to the same enforcement action, FinCEN will allocate the total award among the claimants in a manner it determines is appropriate given their respective contributions. Each individual claimant must separately meet the eligibility requirements.
Awards are funded through the FinCEN Whistleblower Fund, which is financed by monetary penalties, fines, and other sanctions collected in BSA enforcement actions. The existence of a dedicated fund—modeled on the SEC’s Investor Protection Fund—is designed to ensure that awards can be paid promptly and are not subject to annual appropriations uncertainty.
Confidentiality Protections and Anonymous Submissions
One of the most significant concerns for any potential whistleblower is the risk of exposure—to their employer, to the subject of the investigation, and to the public. The FinCEN Whistleblower Program provides robust confidentiality protections designed to address these fears.
FinCEN is required by statute to take reasonable steps to protect the identity of a whistleblower and to not disclose information that could reasonably be expected to reveal the whistleblower’s identity, except under limited circumstances. Disclosure may occur if the whistleblower has consented in writing, if the disclosure is to a federal or state criminal justice authority in connection with a criminal investigation, or if the disclosure is required by a court order. Even in those circumstances, FinCEN is required to notify the whistleblower before making a disclosure to the extent permitted by law.
Critically, the program allows whistleblowers to submit tips anonymously, provided they are represented by an attorney who certifies the submission and agrees to provide identifying information if FinCEN requests it in connection with an award. Anonymous submission is a powerful option for individuals who are concerned about retaliation or professional consequences. However, it requires that the claimant eventually provide their identity to claim any award that may become payable—at which point the confidentiality protections described above continue to apply.
Retaining experienced whistleblower counsel at the outset is especially important for individuals who wish to submit anonymously, as the attorney’s certification carries legal significance and the attorney must be prepared to interact with FinCEN on the claimant’s behalf throughout the process. The choice of counsel can also affect strategy, as an experienced attorney can help present the information in the most compelling and complete manner and can advocate effectively for a larger award percentage.
Anti-Retaliation Protections
Fear of retaliation by an employer or other powerful party is frequently the most significant deterrent facing a potential whistleblower. AMLA 2020 provides meaningful anti-retaliation protections for individuals who report information to FinCEN under the whistleblower program.
Employers and their officers, employees, contractors, subcontractors, and agents are prohibited from discharging, demoting, suspending, threatening, harassing, directly or indirectly, or in any other manner discriminating against a whistleblower in the terms and conditions of employment because of any lawful act done by the whistleblower in providing information to FinCEN under the program, participating in any investigation, judicial, or administrative action based upon the information, or making any disclosure required or protected under the BSA or other applicable laws.
If a whistleblower believes they have suffered retaliation, they may file a complaint with the Department of Labor’s Occupational Safety and Health Administration (OSHA) within 180 days of the retaliatory act, or bring a civil cause of action in federal district court. Prevailing whistleblowers in retaliation cases may be entitled to reinstatement to their former position with the same seniority status, back pay with interest, and the payment of litigation costs, expert witness fees, and reasonable attorneys’ fees.
While these statutory protections are meaningful, practical reality means that whistleblowers sometimes face informal or subtle forms of retaliation that are difficult to prove, such as exclusion from meetings, failure to promote, or hostile work environment conduct. Documenting the timeline of events carefully, preserving communications and records, and retaining legal counsel promptly upon becoming aware of potential retaliation are all important steps to protecting oneself.
It is worth noting that the anti-retaliation protections extend to individuals who make internal reports within their organizations as well as to those who report directly to FinCEN, provided the individual reasonably believes the information relates to possible BSA violations. However, the strongest protections accrue to those who formally submit information to FinCEN through the official whistleblower process. An experienced attorney can advise on the best approach for a given set of circumstances.
How to Submit a Tip: The Process Step by Step
Submitting a tip to the FinCEN Whistleblower Program is a formal process governed by the implementing regulations. Understanding the mechanics of the submission is important to ensuring that your information is properly received and considered.
Prepare your submission carefully. Before submitting anything to FinCEN, you should work with an attorney to organize your information, assess its strength and completeness, and determine the best way to present it. A well-prepared, detailed submission that explains the nature of the violations, the identities of the persons or entities involved, the time period covered, the relevant financial institutions and transactions, and the sources of your knowledge is far more likely to result in a successful enforcement action—and a larger award—than a vague or disorganized tip.
Submit the required forms. Whistleblowers submit information to FinCEN using the official submission forms designated for this purpose. The submission must be made in good faith and must include a declaration, signed under penalty of perjury, that the information is true, correct, and complete to the best of the claimant’s knowledge. If submitting anonymously, the claimant’s attorney executes the submission and provides the certification required under the regulations.
Acknowledgment and confidential treatment. Upon receiving a submission, FinCEN will acknowledge receipt and assign a tracking number. The information is treated as confidential from the outset. FinCEN’s staff will evaluate the submission to determine whether it constitutes original information and whether it is sufficiently specific and credible to warrant an investigation or to support or advance an existing investigation.
Investigation and enforcement. If FinCEN determines that the information warrants action, it may open a new investigation, refer the information to the Department of Justice or other law enforcement agencies, or incorporate it into an ongoing matter. The investigation process can be lengthy—potentially years—and the whistleblower will generally not be informed of the status or progress of the investigation during this period. This is one of the most challenging aspects of the process for claimants to manage, and it underscores the importance of having experienced counsel who can help maintain perspective and, where appropriate, make inquiries on the claimant’s behalf.
Award claim and determination. Once an enforcement action is concluded and sanctions are collected, FinCEN will publish notice of the covered action on its website. Whistleblowers (or their attorneys, if submitted anonymously) must then file an award claim form within the time period specified in the notice. FinCEN will then review the claim, assess the claimant’s eligibility and the significance of their contribution, and issue a preliminary determination of the award amount.
Review and appeal. Claimants who disagree with a preliminary award determination may request a review by FinCEN and ultimately may appeal to a federal court of appeals. This review process is an important safeguard for whistleblowers, ensuring that the award determination process is subject to meaningful oversight. Legal counsel is again essential at this stage, as the administrative record developed during the review process will be the basis for any judicial appeal.
Relationship to Other Whistleblower Programs
The FinCEN Whistleblower Program does not operate in isolation. Financial crime often involves conduct that implicates multiple federal regulatory regimes simultaneously, and a potential whistleblower may have information that is relevant to FinCEN, the SEC, the CFTC, the IRS, the Department of Justice, or other agencies. Understanding how these programs interact is essential to maximizing your rights and potential recovery.
The SEC Whistleblower Program, established under Dodd-Frank in 2010, rewards individuals who provide original information about violations of the federal securities laws, including fraud, insider trading, and accounting irregularities. The SEC has paid billions of dollars in awards to thousands of whistleblowers since the program’s inception and has demonstrated a sustained commitment to protecting and rewarding tipsters. Financial crimes that involve publicly traded companies, broker-dealers, investment advisers, or the securities markets may simultaneously involve BSA violations and securities law violations, making both the SEC and FinCEN programs potentially applicable.
The CFTC Whistleblower Program similarly covers violations of the Commodity Exchange Act, including fraud and manipulation in the commodities and derivatives markets. Given the involvement of digital assets in financial crime and the ongoing jurisdictional debate between the CFTC and SEC over cryptocurrency, individuals with information about illicit activity in the digital asset space should carefully analyze which program or programs may be most appropriate.
The IRS Whistleblower Program, administered by the IRS Whistleblower Office, provides awards for information about federal tax underpayments exceeding $2,000,000. Money laundering and offshore tax evasion frequently overlap, and the same conduct may give rise to both BSA violations and tax violations. The IRS program has its own distinct procedural requirements and timelines, and coordinating submissions across multiple programs requires careful legal planning.
The False Claims Act, which provides awards for reporting fraud against the federal government through qui tam lawsuits, may also be relevant in certain circumstances—for example, where financial institutions or government contractors have defrauded the government and the fraud involves BSA violations. Qui tam actions are filed under seal in federal court and are investigated by the Department of Justice, and they can result in substantial awards to whistleblowers.
Navigating the intersection of these programs requires sophisticated legal analysis. An experienced whistleblower attorney can help you assess which programs apply to your information, how to structure your submissions to maximize protection and award potential, and how to manage the timing of filings across multiple agencies.
Practical Considerations and Common Pitfalls
Beyond the formal legal requirements, there are a number of practical considerations that any potential FinCEN whistleblower should bear in mind. Failing to attend to these can significantly diminish the value of a submission or create unintended legal exposure.
Documentation is paramount. FinCEN and the law enforcement agencies that may rely on whistleblower information place a premium on submissions that are supported by concrete, specific evidence rather than general allegations. To the extent that you have access to documents, records, transaction data, emails, or other materials that corroborate your information, preserving and organizing them before making any submission—or before your access to them is cut off—can make the difference between a successful enforcement action and a tip that cannot be acted upon. However, you must be careful not to take documents or data in ways that violate your employment agreement, applicable data protection laws, or the law more generally. Your attorney can advise you on what you may lawfully preserve and provide.
Timing matters. The earlier you report, the more likely it is that your information will be deemed truly original and the more impact it can have on an investigation. Delay can also mean that others with similar information report first, potentially affecting your priority and your award. At the same time, you should not rush to submit a poorly prepared or incomplete tip. Working quickly but carefully with experienced counsel is the best approach.
Internal reporting first is a consideration, not a requirement. Unlike some other whistleblower regimes, the FinCEN Whistleblower Program does not require you to report internally to your employer before going to FinCEN. Some individuals may prefer to report internally first in the hope that the institution will address the problem voluntarily; others may be concerned that internal reporting will result in retaliation or destruction of evidence. This is a strategic decision that should be made with the advice of counsel, taking into account the specific facts of your situation.
Be scrupulous about your own conduct. FinCEN and enforcement agencies will scrutinize not only the violations you are reporting but also your own conduct in connection with those violations. If you participated in the wrongdoing you are reporting, you may face civil or criminal exposure, and the award you could receive may be reduced. Disclosing your own involvement candidly to your attorney—who is bound by professional confidentiality obligations—is essential so that your counsel can properly advise you.
Why Legal Representation Is Essential
The FinCEN Whistleblower Program offers the prospect of life-changing financial rewards to individuals with genuine knowledge of serious violations of the anti-money laundering laws. But the process is complex, the rules are technical, and the stakes on both sides are high. Navigating the program effectively—from assessing whether your information qualifies, to preparing and submitting your tip, to advocating for the maximum award and protecting yourself from retaliation—requires experienced legal counsel.
An attorney who specializes in whistleblower law can help you assess the strength and originality of your information, identify all potentially applicable reward programs, structure your submission to maximize its impact, protect your identity through anonymous submission, assert your rights in the event of retaliation, manage any personal legal exposure you may have, and advocate effectively for your award through the determination and review process. The attorney-client relationship also means that your candid communications with your lawyer about the full facts of your situation—including any aspects that may reflect negatively on you—are protected by professional privilege.
Most whistleblower attorneys handle these matters on a contingency basis, meaning they are paid a percentage of any award you receive and charge no fee if you do not prevail. This aligns the attorney’s interests with yours and ensures that cost is not a barrier to obtaining quality representation. You should inquire about fee arrangements at the outset of any engagement.
Conclusion
The FinCEN Whistleblower Program represents a significant and still-evolving development in the United States government’s effort to combat money laundering, terrorist financing, and other financial crimes. By offering substantial financial rewards, meaningful confidentiality protections, and robust anti-retaliation rights, Congress has created real incentives for individuals with inside knowledge to come forward. As the program matures and the first major enforcement actions and awards are completed, it is expected to become an increasingly significant tool in the federal enforcement arsenal—and an increasingly valuable avenue for courageous individuals who are willing to do the right thing.
If you believe you have information about violations of the Bank Secrecy Act or other laws administered by FinCEN, we encourage you to contact our firm for a confidential consultation. We have experience advising whistleblowers across multiple federal programs and can help you understand your rights, evaluate your options, and take the steps necessary to protect both yourself and the integrity of the financial system.
DISCLAIMER: This article is provided for general informational and educational purposes only and does not constitute legal advice. The information contained herein may not reflect the most current legal developments and may not apply to your specific circumstances. You should consult a licensed attorney regarding any particular legal matter. No attorney-client relationship is created by reading or relying on this article.