New Bill Promises Large Cash Awards for Anti-Money Laundering Whistleblowers  

New Bill Promises Large Cash Awards for Anti-Money Laundering Whistleblowers  

A new defense bill proposes the creation of a whistleblower program to encourage reporting of anti-money laundering violations. The proposed regulations, which are part of the National Defense Authorization Act, have garnered legislators’ approval and could be signed into law before Donald Trump leaves the White House.

The new legislation would offer anti-money laundering (AML) whistleblowers a similar level of protection as the SEC's whistleblower program. Informants would be able to report violations anonymously and would enjoy anti-retaliation protections. Without this legal shield, people with information about money laundering activities are very reluctant to come forward. Many of them fear their employers might fire them in retaliation. And once out of a job, they often find themselves labeled as 'problematic' and unable to find work in the same industry.

Since its inception, the SEC whistleblower program has paid more than $720 million to securities industry insiders who came forward with tips leading to enforcement actions. Since the SEC and CFTC whistleblower programs have limited jurisdiction over AML violations, their success has not served to deter money launderers....

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