On March 30, 2026, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice of proposed rulemaking (NPRM) to establish a whistleblower program designed to encourage the reporting of information about potential violations of money laundering and sanctions laws.
Among other things, the NPRM: (i) proposes procedures for whistleblowers to share tips and apply for an award; (ii) sets forth the eligibility criteria for making awards and the process for adjudicating award applications; (iii) provides for awards of between 10% and 30% of collected monetary penalties for individuals whose tip leads to a successful enforcement action by Treasury or the US Department of Justice (DOJ); and (iv) establishes protections for whistleblowers who provide information through the whistleblower program.Whistleblower Incentives and Protections, 91 Fed. Reg. 16328, 16377 (April 1, 2026).
The NPRM implements the Anti-Money Laundering Act of 2020 and the Anti-Money Laundering Whistleblower Improvement Act. It comes in the wake of President Trump’s March 2025 executive order “Protecting America’s Bank Account Against Fraud, Waste, and Abuse” (the Order), which declared that “[i]t is the policy of the United States to defend against financial fraud and improper payments, increase transparency and accountability around the Federal Government’s operations and financial condition, increase efficiency, reduce costs, and enhance the security of Federal payments.United States, Executive Office of the President, Executive Order No. 14249: “Protecting America’s Bank Account Against Fraud, Waste, and Abuse” (March 25, 2025), available at https://www.whitehouse.gov/presidential-actions/2025/03/protecting-americas-bank-account-against-fraud-waste-and-abuse/.
The Order emphasized the need for Treasury, as the largest financial payment manager of the federal government, to have robust informational tools at its disposal to monitor and track transactions for impropriety. In support of the administration’s efforts, Treasury Secretary Scott Bessent announced that Treasury would provide financial rewards for eligible whistleblower tips and unveiled a series of initiatives Treasury is undertaking to safeguard the US financial system and national security.
On February 13, 2026, FinCEN launched a webpage to accept confidential whistleblower tips on certain money laundering, sanctions, and fraud violations.Department of Treasury, Press Release, “FinCEN Launches Webpage for Whistleblower Tips on Fraud, Money Laundering, Sanctions Violations” (Feb. 13, 2026), available at https://www.fincen.gov/news/news-releases/fincen-launches-webpage-whistleblower-tips-fraud-money-laundering-sanctions. The webpage is administered by FinCEN’s Office of the Whistleblower, which accepts tips involving violations and conspiracies related to the Bank Secrecy Act (BSA), economic sanctions programs, and several other laws “critical to safeguarding the U.S. financial system and national security.”Department of Treasury, Press Release, “Treasury Accepting Whistleblower Tips on Fraud, Money Laundering, Sanctions Violations” (Feb. 13, 2026), available at https://home.treasury.gov/news/press-releases/sb0394. As detailed in the NPRM, individuals who provide information may be eligible for monetary awards if their tip leads to a successful enforcement action.
The whistleblower program is administered pursuant to 31 U.S.C. § 5323, which authorizes the Secretary of the Treasury to pay awards to compensate individuals who come forward with valuable information about financial crimes. Such information must be used in a “covered judicial or administrative action” brought by Treasury or the Attorney General under the BSA, the International Emergency Economic Powers Act, or the Foreign Narcotics Kingpin Designation Act, and must ultimately lead to a successful enforcement action resulting in monetary sanctions exceeding $1 million.31 U.S.C. § 5323.
A whistleblower can be any individual, or two or more individuals acting jointly, who provides information relating to a violation of the covered laws, or a conspiracy to violate those laws. To qualify for an award, the whistleblower must provide “original information” derived from independent knowledge or analysis that is not already known to the Secretary or the Attorney General through other sources. Accordingly, whistleblowers must not be a member, officer, or employee acting in the normal course of their job duties of (i) an appropriate regulatory or banking agency; (ii) Treasury or DOJ; or (iii) a law enforcement agency.§ 5323(c)(2)(A).
Additionally, a whistleblower who is convicted of a criminal violation related to the judicial or administrative action they are reporting or any whistleblower who fails to submit information to the Secretary or the Attorney General as required is not able to receive awards under 31 U.S.C. § 5323.§ 5323(c)(2)(B)–(C). The NPRM provides additional bases for ineligibility, including certain individuals who gain information from internal compliance systems.91 Fed. Reg. 16328, 16377.
Whistleblowers located in the United States or abroad are eligible and can also submit a tip anonymously by submitting their information to the FinCEN whistleblower program through an attorney.31 U.S.C. § 5323; Office of the Whistleblower, Financial Crimes Enforcement Network, “Blow the Whistle on Fraud-Related AML and Sanctions Violations,” available at https://www.fincen.gov/system/files/2026-02/owb-whistleblower-bulletin.pdf. However, before the payment of an award, the whistleblower must disclose their identity and provide any information the Secretary deems necessary.§ 5323 (d)(2)(B).
31 U.S.C. § 5323 authorizes awards between 10% and 30% of monetary sanctions imposed in the action. However, the final award amount remains subject to the discretion of the Secretary. In determining the award, the Secretary must consider several factors, including the significance of the information to the success of the action, the degree of assistance provided by the whistleblower during the pendency of the proceedings, and Treasury’s programmatic interest in deterring violations by making these awards to whistleblowers.§ 5323(c)(1)(B).
Although the whistleblower program is administered by FinCEN (which is not authorized to enforce US sanctions) and the implementing statute did not originally provide for awards related to sanctions violations, Congress broadened the scope of the program in the Consolidated Appropriations Act of 2023 to include civil and criminal enforcement actions brought under most US sanctions programs. This change significantly broadens the scope of the whistleblower program.
The broadening of the whistleblower program has the potential to dramatically increase the number and magnitude of actions brought under the program. In 2025, FinCEN brought two civil enforcement actions for a total of about $40 million, while the Office of Foreign Assets Control (OFAC) brought 14 civil enforcement actions (12 of which were over the $1 million threshold) for a total of $265 million. In 2024, FinCEN brought three civil enforcement actions (with only one imposing a penalty above $1 million), while OFAC brought 12, for about $49 million. The establishment of a new reporting channel and monetary incentives could help drive additional civil actions.See Department of Treasury, Office of Foreign Assets Control, “Civil Penalties and Enforcement Information,” available at https://ofac.treasury.gov/civil-penalties-and-enforcement-information; see Financial Crimes Enforcement Network, “Enforcement Actions,” available at https://www.fincen.gov/news/enforcement-actions.
From the establishment of the anti-money laundering whistleblower program in 2021 through May 2024, FinCEN reported receiving at least 270 unique tips that it processed and referred internally, to OFAC or DOJ. The majority of these tips were sanctions-related.Financial Crimes Enforcement Network, Statement of FinCEN Director Andrea Gacki before the House Committee on Financial Services (Feb. 14, 2024), available at https://www.fincen.gov/news/testimony/statement-fincen-director-andrea-gacki-house-committee-financial-services; Financial Crimes Enforcement Network, Prepared Remarks of FinCEN Director Andrea Gacki During the SIFMA AML Conference (May 6, 2024), available at https://www.fincen.gov/news/speeches/prepared-remarks-fincen-director-andrea-gacki-during-sifma-aml-conference.
FinCEN has already begun accepting tips on potential violations, although it will not process and pay awards until the regulations are finalized.The comment period for the proposed rule closes on June 1, 2026. It is not known at this point when FinCEN will issue a final rule. In the meantime, FinCEN has started developing the infrastructure to administer the program by creating the Office of the Whistleblower, hiring personnel to lead the program, and proposing rules to implement the whistleblower program.Financial Crimes Enforcement Network, “Prepared Remarks of FinCEN Acting Director Himamauli Das During NYU Law’s Program on Corporate Compliance and Enforcement” (March 25, 2022), available at https://www.fincen.gov/news/speeches/prepared-remarks-fincen-acting-director-himamauli-das-during-nyu-laws-program. According to Treasury, FinCEN is particularly interested in tips involving violations that may “involve, enable, or arise out of a suspected fraud scheme.”Office of the Whistleblower, FinCEN Whistleblower Bulletin: “Blow the Whistle on Fraud-Related AML and Sanctions Violations,” available at https://www.fincen.gov/system/files/2026-02/owb-whistleblower-bulletin.pdf/.
Per the NPRM, in order to be eligible for an award, whistleblowers must submit a tip to FinCEN using the Tip, Complaint, or Referral form (Form TCR) or a successor form via the whistleblower webpage.91 Fed. Reg. 16328, 16331. Form TCR includes questions categorized by information about (i) the individual submitting the form; (ii) the individual’s attorney; (iii) the subject of the form; and (iv) the tip, complaint, or referral.91 Fed. Reg. 16328, 16363.
The NPRM also provides that FinCEN has the discretion to determine whether the whistleblower’s information “led” to an enforcement action and establishes criteria to make this determination. As set forth in 31 CFR 1010.930(c)(4)(ii)(A), FinCEN would consider whether the whistleblower’s information was “sufficiently specific, credible, and timely to cause an appropriate agency or authority to commence, open, or reopen an examination or investigation, or inquire concerning different conduct as part of a current examination or investigation.”91 Fed. Reg. 16328, 16377. In addition, FinCEN would consider whether an agency or authority successfully enforced the action “based in whole or in part on specific conduct that was the subject of the whistleblower’s original information.”91 Fed. Reg. 16328, 16377.
For information regarding conduct already under investigation, the NPRM proposes a higher standard — FinCEN would consider whether the information “significantly contributed” to the action’s successful enforcement.91 Fed. Reg. 16328, 16377.
Pursuant to its regulations, OFAC accounts for voluntary self-disclosure (VSD) as a mitigating factor when determining the penalty for an enforcement action. In cases where the violation is disclosed through a VSD, the civil penalty can be reduced by 50%.Office of Foreign Assets Control, Department of Commerce, Department of the Treasury, and Department of Justice Tri-Seal Compliance Note: “Voluntary Self-Disclosure of Potential Violations” (July 26, 2023), available at https://ofac.treasury.gov/media/932036/download?inline. Recent enforcement trends underscore the significance of VSD. In 2023, nearly 60% of OFAC’s enforcement actions (10 of 17) involved VSDs, which served as a mitigating factor. That pattern continued in 2024 and 2025, with 42% and 29% of actions involving VSDs, respectively.These numbers do not include cases OFAC closed with a Cautionary Letter, many of which likely involved VSDs.
A recent OFAC enforcement action illustrates the potential effect of the whistleblower program on companies and their employees. In this case, a US person employed at a US company’s Dubai subsidiary discovered sanctions violations, and, upon raising the issue to his supervisors in Dubai, was dismissed. Notwithstanding that dismissal, the employee flew to the United States and reported the conduct to US headquarters, which then voluntarily self-disclosed to OFAC.
With the launch of FinCEN’s whistleblower program, employees who discover potential violations may now be more inclined to report directly to the government rather than management. This would certainly be true in a case like the one described above, in which an employee was terminated for reporting the matter — an action that itself is prohibited by the anti-retaliation provisions of the NPRM. On the employer side, the fact that whistleblowers have a new financial incentive changes the VSD calculus for companies because it increases the likelihood that FinCEN and OFAC will discover a violation.
The whistleblower program may also decrease how much time a company has before it must decide whether to submit a VSD. Because a qualifying VSD must occur prior to, or simultaneous with, the discovery by OFAC or another government agency of the apparent violation and must be self-initiated, a company would need to submit at least an “initial” VSD before a potential whistleblower reports the matter in order to obtain the full benefits of a VSD.Department of Commerce, Department of the Treasury, and Department of Justice Tri-Seal Compliance Note: “Obligations of foreign-based persons to comply with U.S. sanctions and export control laws” (March 6, 2024), available at https://ofac.treasury.gov/media/932746/download?inline. Although an initial VSD does not require a company to have completed its investigation, the whistleblower program still places a burden on a company’s compliance program to quickly identify and assess potential violations.
The NPRM attempts to address this issue by requiring certain individuals to wait at least 120 days from the date they obtained the information before submitting a tip. These individuals include whistleblowers who obtained such information from the company’s internal audit and compliance program.91 Fed. Reg. 16328, 16332. This waiting period allows entities time to review information and consider submitting a VSD.
Nonetheless, the whistleblower program raises the stakes on having an effective compliance program and places a premium on having sufficient procedures to identify, detect, and address possible violations of the laws covered by this program. Companies should ensure their procedures adequately channel information about potential violations to personnel with authority to disclose such information promptly and voluntarily to the government in order to obtain the benefits of VSD.
The establishment of financial rewards for whistleblowers has drawn significant attention from law firms that specialize in whistleblower representation. These firms typically operate on a contingency fee basis, meaning whistleblowers pay nothing unless they receive a reward. Whistleblower attorneys guide individuals and can often protect whistleblower identities through anonymous submissions on their behalf. The growing investment by specialized law firms in this area suggests an expectation that BSA- and sanctions-related whistleblower claims will become an increasingly significant source of tips to government enforcement agencies. In addition to FinCEN’s whistleblower program, BSA obligations of broker-dealers and futures commission merchants can be the subject of whistleblower tips to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) under those agencies’ own whistleblower programs.
FinCEN Director Andrea Gacki stated that “FinCEN’s mission is to safeguard the financial system from illicit use, combat money laundering and related crimes, including terrorism, and promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.” The administration has shifted to incentivize the exposure of information that would lead to more civil enforcement actions. As such, Treasury has expanded its ability to obtain information to pursue potential violations and enforce these regulations. FinCEN’s whistleblower program reinforces the agency’s commitment to this goal.
The whistleblower program creates a new pathway for individuals to report various types of potential misconduct and to receive financial benefits in connection with the same. The announcement of the program and the NPRM represent important developments in how companies identify, detect, and address potential fraud, money laundering, and sanctions violations.
Latham & Watkins will continue to monitor developments in this area and is available to assist clients in assessing the impact of FinCEN’s whistleblower program.