The introduction of the Anti-Money Laundering (AML) Whistleblower Program, created as part of the fiscal 2021 National Defense Authorization Act, marked a significant development in the fight against international money laundering and illicit financial activity under the Bank Secrecy Act and was a clear acknowledgment by the government that whistleblowers play a critical role in aiding government investigations and prosecutions.

In late December 2022, President Joe Biden signed into law the AML Whistleblower Improvement Act that substantially ups the ante for both domestic and overseas financial services companies that have AML compliance and reporting obligations, including banks, branches, and agencies of foreign banks, securities broker-dealers, and insurance companies. This legislation is aimed, in part, to enforce U.S. sanctions against Russia by identifying and seizing laundered assets. Under its terms, a financial bounty of a minimum of 10% up to 30% of collected sanctions exceeding $1 million may be rewarded to whistleblowers, and citizens of any country in the world may confidentially and anonymously (if represented by counsel) report violations, thereby further incentivizing whistleblowers to come forward without fear of retribution. Further, AML whistleblowers do not have to be insiders—they can submit a whistleblower tip based on their own independent analysis of publicly available data. Finally, compliance department personnel can blow the whistle on their own companies when internal measures prove inadequate.

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