SEC Names New Whistleblower Chief

On November 5, 2021, the SEC announced that Nicole Creola Kelly would take over as Chief of the SEC’s Office of the Whistleblower.  The Office of the Whistleblower oversees the agency’s hugely successful Whistleblower Program, which has awarded about $1.1 billion to 226 individuals over the last decade.  Over the same period, those whistleblowers have helped the SEC obtain roughly $5 billion in financial penalties from securities fraudsters and cheats.  The program...

The New ENABLERS Act May Be a Backdoor Way to Expand the Anti-Money Laundering Whistleblower Program

In The Hill this week, I argue that the newly proposed ENABLERS Act is a lot more powerful than even its authors seem to realize.  The proposed law would effectively expand the Bank Secrecy Act to apply the same reporting requirements currently imposed on banks to all sorts of actors who enable (get it?) money laundering: lawyers, investment advisers, accountants, art dealers, public relations firms, and the like.  What the...

Pandora Papers Show the Value of Financial Transparency, the Critical Role of Whistleblowers – and the Need for Additional Regulation

This week, the International Consortium of Investigative Journalists and its partners began publicly reporting on the “Pandora Papers,” a trove of millions of leaked documents from firms around the world that help customers set up “offshore” accounts and shell companies designed to conceal financial truths.  The leaked documents, and the extensive reporting on the documents, sheds light on the murky world of offshore banking and the ways in which the...

Jane Norberg Steps Down After Landmark Run As SEC Whistleblower Chief

Jane Norberg, Chief of the SEC's Office of the Whistleblower, will step down this month after five groundbreaking years.  Norberg played a pivotal role in shaping the SEC Whistleblower Program into a model for how empowering whistleblowers can revolutionize government enforcement.  Her tenure brought record payouts to whistleblowers, a streamlined award process, and a firm stand against any attacks on the public’s right to blow the whistle. Without question, Norberg...

As COVID-19 Stimulus Funds Flow, DOJ Puts Fraudsters on Notice and Calls Whistleblowers “Essential”

On March 11th, President Biden signed The American Rescue Plan Act of 2021 (ARPA), a sweeping economic stimulus plan that will pump $1.9 trillion into the US economy. In addition to direct relief to Americans, ARPA includes record-setting government spending in numerous areas to speed recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession. As we have previously written, with such massive government spending,...

The New BSA Whistleblower Provision – From the Whistleblowers’ Perspective

Constantine Cannon whistleblower attorneys Mary Inman and Carolina Gonzalez were recently guest bloggers at Money Laundering Watch from Ballard Spahr.  Ballard Spahr attorneys Peter D. Hardy and Meredith S. Dante posed questions to Inman and Gonzalez about recent amendments to the Bank Secrecy Act that provide new options for whistleblowers reporting anti-money laundering violations.  With the kind permission of Money Laundering Watch, we include that exchange here for our readers....

A Better Approach for Encouraging Would-Be Whistleblowers to Stand Up and Be Heard

There is a clear recognition these days that whistleblowers play a critical role in rooting out fraud and misconduct.  That is why Congress has passed an ever-increasing array of legislation aimed at protecting and rewarding whistleblowers. There is the False Claims Act, which rewards and protects whistleblowers who report fraud against the federal government.  A majority of states have passed analogous state False Claims Act statutes.  There is the SEC...

US Bill to Offer Rewards for Whistleblowers Exposing Money Laundering

Partner Mary Inman was quoted in the OCCRP article, "US Bill to Offer Rewards for Whistleblowers Exposing Money Laundering", published on January 18, 2021. Treasury’s new whistleblower reward program is inspired by the highly successful U.S. Securities and Exchange Commission (SEC) Whistleblower Reward Program created by the Dodd-Frank Wall Street Reform and Consumer Protection Act following the 2008 financial crisis. Under the new program, Treasury can incentivize the US and...

New US Whistleblower Reward Program Bolsters Anti-Money Laundering Fight

PartnerMary Inman was quoted in The Banker article, “New US whistleblower reward scheme bolsters AML fight”, published on January 14, 2021. A new anti-money laundering (AML) whistleblower reward program was included in the US government defense spending bill recently passed by Congress. This program arose in the wake of the FinCEN Files leak, revealing how fraudsters successfully moved millions of dollars of stolen money worldwide through the US and global...

Anti-Money Laundering and Sanctions Whistleblower Program

Whistleblowers can receive awards for reporting violations of the Bank Secrecy Act and sanctions laws In 2021, the United States took a critical step for anti-money laundering (AML) enforcement by creating a long overdue AML whistleblower program.  The new whistleblower program, was passed as part of the Anti-Money Laundering Act of 2020 (AMLA), part of the National Defense Authorization Act (NDAA).  The new program is administered by the Department of Treasury...