FinCEN Moves Another Step Closer to Issuing Its First Award Under Its AML/Sanctions Whistleblower Program
By the Constantine Cannon Whistleblower Team
On Monday (March 30), the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued a press release announcing its Notice of Proposed Rulemaking “to fully implement” FinCEN’s AML/Sanctions Whistleblower Program.[1]
What is the FinCEN AML/Sanctions Whistleblower Program?
This is the whistleblower program Congress established in 2021 (and expanded in 2022) that rewards whistleblowers for reporting anti-money laundering (AML) violations under the Bank Secrecy Act (BSA) and sanctions violations under the various statutes that prevent doing business with sanctioned entities. Whistleblowers can receive up to 30% of the Government’s recovery from any resulting AML or sanctions enforcement action.
FinCEN’s whistleblower program is codified in the Anti-Money Laundering Act of 2020 and the Anti-Money Laundering Whistleblower Improvement Act of 2022, and the agency has been accepting whistleblower tips and submissions since the program’s launch. However, the agency has yet to formalize the rules and regulations governing the program. That is what FinCEN hopes to accomplish with its proposed rulemaking, which it will finalize after a 60-day period during which all interested parties — including whistleblowers and their counsel — will have an opportunity to comment.
What is the Significance of FinCEN’s Proposed Rulemaking?
The proposed rulemaking is exhaustive, with roughly 130 pages of information covering all aspects of the whistleblower program, including (i) the procedures for submitting information on potential violations; (ii) the eligibility requirements for an award; (iii) the procedures for submitting an award application; (iv) the process FinCEN will use to adjudicate award applications; and (v) the protections afforded whistleblowers under the program. Once finalized, it will provide whistleblowers and their counsel with a clear roadmap of the steps a whistleblower must follow under the program to be eligible for an award.
By all accounts, the proposed rulemaking is FinCEN’s final step in building out its whistleblower program before it begins to issue awards. The agency says as much on its whistleblower-dedicated website, noting “once that regulation is finalized, FinCEN will begin processing and paying awards.”[2]
The agency launched this dedicated whistleblower website in February with Treasury Secretary Scott Bessent highlighting the Government’s renewed focus on AML/Sanctions-type violations and the critical role he expects whistleblowers to play: “We are going to offer whistleblower payments to anyone who wants to tell us the who, what, when, where, and how this fraud and money laundering has occurred.”[3]
In announcing the proposed rulemaking, Secretary Bessent was equally enthusiastic about the whistleblower program and the promise of rewards to come:
“As promised, Treasury will reward whistleblowers who provide timely, actionable information on fraud, sanctions violations, and other significant illicit finance activity. President Trump has been clear that Americans have a right to know that their tax dollars are not being diverted to fund acts of global terror or to fund luxury cars for fraudsters. At Treasury, we follow the money, and we strongly encourage individuals to come forward with credible tips to help safeguard our financial system.”
When Will FinCEN Issue Its First AML/Sanctions Whistleblower Award?
With all this activity and promotion, we can expect FinCEN to begin issuing its first awards under the whistleblower program in the very near future. Constantine Cannon whistleblower partner Marlene Koury — who has substantial experience working with FinCEN and representing whistleblowers under the program — believes we will start seeing awards under the program in the coming months.
According to Koury, “We are getting strong indications from multiple sources all pointing in the same direction — that FinCEN is poised to make its first awards soon.” This comes not only from the agency’s recent build out and promotion of the program, but also from Koury’s first-hand experience representing whistleblowers before the agency. “They are taking whistleblower filings extremely seriously,” she says, “and making clear how important whistleblowers are to their enforcement efforts.”
What Does FinCEN’s AML/Sanctions Whistleblower Program Cover?
The AML/Sanctions Whistleblower Program covers anti-money laundering violations under the BSA and sanctions violations under the International Emergency Economic Powers Act, the Trading With the Enemy Act, and the Foreign Narcotics Kingpin Designation Act. FinCEN runs the whistleblower program and enforces the BSA, while the Office of Foreign Assets Control (OFAC) enforces the sanctions statutes.
In a February 13, 2026 bulletin, FinCEN identified some of the more common AML and sanctions violations whistleblowers should watch out for.[4] They mostly involve (i) financial institutions not performing sufficient due diligence or having sufficient controls to identify customers engaging in suspicious or aberrant financial transactions or doing business in industries or regions especially prone to fraud, or (ii) companies submitting falsified trade-related documents to conceal sanctionable activity or doing business in or with a sanctioned jurisdiction or individual.
Constantine Cannon Has Substantial Experience Representing Whistleblowers Under FinCEN’s AML/Sanctions Whistleblower Program
Constantine Cannon has substantial experience representing whistleblowers under the FinCEN program, with multiple whistleblower submissions pending before the agency. Koury says the flow of AML/sanctions whistleblower intakes the firm has received has never been higher and has been particularly heavy over the past several months with all the attention the program has received.
So if you have information relating to potential AML and sanctions violations, or what it means to be a whistleblower more broadly, please do not hesitate to contact us. We will connect you with an experienced member of our whistleblower team for a free and confidential consultation.
Sources:
[1] See https://www.fincen.gov/news/news-releases/fincen-proposes-rule-pay-whistleblowers.
[2] See https://www.fincen.gov/whistleblower-program.
[3] See https://www.fincen.gov/whistleblower/.
[4] See https://www.fincen.gov/system/files/2026-02/owb-whistleblower-bulletin.pdf.
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