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...

Catch of the Week: Capital One pays $390M to resolve anti-money laundering (AML) violations.

Capital One, one of America’s ten largest banks, has agreed to pay $390 million to resolve allegations that it violated the Bank Secrecy Act and various other laws targeted at preventing money laundering. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) specifically said that Capital One willfully failed to guard against money laundering from 2008 to 2014, including a failure to file thousands of suspicious activities reports and currency transaction...

Congress Set to Pass NDAA with New Whistleblower Reward Provisions for Money Laundering

The FY21 National Defense Authorization Act (NDAA), likely to be passed by Congress this week, takes a critical step for anti-money laundering (AML) enforcement by creating a long overdue AML whistleblower program.  The NDAA’s new whistleblower program, administered by the Department of Treasury, would provide for mandatory awards to whistleblowers who brought forward information about violations of the Bank Secrecy Act (BSA), our primary AML enforcement law. As our attorneys...

Record-Setting Submissions: CFTC Whistleblower Program 2020 Annual Report Documents Increasing Popularity of Program

Every year, the Commodity Futures Trading Commission is required to report to Congress about the CFTC Whistleblower Reward Program, created by the Dodd-Frank Act, which pays awards to eligible whistleblowers who voluntarily provide the Commission with original information, about matters within the CFTC’s jurisdiction, that leads to the recovery of more than $1 million in monetary sanctions.  This week, the CFTC released its 2020 Annual Report covering the fiscal year...

SEC Again Postpones Hearing on Controversial Whistleblower Award Rule Amendments

For the second time, the SEC pulled the plug on hearings to consider amendments to some key rules affecting its whistleblower reward program.  Just a day before hearings scheduled for September 2, 2020, the SEC canceled them, indicating only that they would be rescheduled for a future date.  The Commission had done the same thing in fall 2019, abandoning hearings at the last minute. There are many potential reasons for...

Whistleblowers Are Critical to Exposing Fraud in the Murky World of For-Profit and Private-Equity Nursing Home Operations

The settlement of a fraud case against 27 skilled nursing facilities controlled by private owners demonstrates “the power of whistleblowers to shine a light on improper business practices and obtain significant recoveries on behalf of United States taxpayers.”  (U.S. Attorney Nick Hanna, C.D. California.)  The government’s recognition of the contributions of whistleblowers in the False Claims Act case against Longwood Management Corp. is one of several remarkable features: the eye-popping...