FinCEN Filed NPRM Offering 10-30% Cut to Financial Crime Whistleblowers

FinCEN published a Notice of Proposed Rulemaking under 31 U.S.C. § 5323 that would pay whistleblowers 10-30% of monetary sanctions collected in cases involving the Bank Secrecy Act, the International Emergency Economic Powers Act, the Trading With the Enemy Act, and the Foreign Narcotics Kingpin Designation Act.

Treasury Secretary Scott Bessent said the rule would “reward whistleblowers who provide timely, actionable information on fraud, sanctions violations, and other significant illicit finance activity.” Legal authority for the program traces to the Anti-Money Laundering Whistleblower Improvement Act of 2022.

To qualify, a tip can’t already be known to Treasury or DOJ and can’t come exclusively from public sources. A whistleblower doesn’t need direct, first-hand knowledge: analysis of publicly available data qualifies if it produces “material insights” not generally available. Voluntariness is strict. Any informal request for information before a submission kills the claim.

There’s a catch for compliance insiders. Anyone whose fiduciary or compliance role explains how they learned the information faces a 120-day waiting period before filing for an award. FinCEN says this gives companies time to self-report before a whistleblower races to Treasury.

“Covered action” requires monetary sanctions exceeding $1,000,000, but FinCEN can bundle related cases to cross that threshold.

The projected volume tells the story: FinCEN estimates submissions will rise from roughly 90 per year between 2021 and 2024 to approximately 250 original and 150 supplemental submissions annually within three years of the rule taking effect.

The 60-day notice and comment period closes before the rule becomes final.

James Okafor