What Is the AML/BSA Whistleblower Program—and Who Runs It?

The Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) whistleblower program gives people a way to report certain financial-crime violations to the U.S. government and, in qualifying cases, seek a monetary award. It is not a general reward program for reporting every suspicious transaction, and submitting a tip does not guarantee an investigation, payment, or protection from workplace consequences.

The program was created by the Anti-Money Laundering Whistleblower Improvement Act of 2022, enacted on December 23, 2022, as part of the National Defense Authorization Act for Fiscal Year 2023. The U.S. Department of the Treasury administers the program through the Financial Crimes Enforcement Network (FinCEN), which is the Treasury bureau responsible for administering the BSA and receiving whistleblower information.

This guide explains who may qualify, what “original information” means, which violations may be covered, and how the program relates to Suspicious Activity Reports (SARs). It is general information, not legal advice.

What Is the AML/BSA Whistleblower Program?

The program encourages people to voluntarily provide original information about possible violations of the BSA and certain related laws. The BSA is the federal framework requiring financial institutions and other covered businesses to maintain records and help detect and report money laundering and other financial crime.

FinCEN can use information from a whistleblower to investigate possible misconduct or refer it to another government agency. If the information contributes to a successful enforcement action that results in qualifying monetary sanctions, the whistleblower may be eligible for an award.

The law generally provides for an award of 10% to 30% of monetary sanctions collected in a qualifying action, when sanctions exceed $1 million. The amount is determined under the program’s rules and depends on factors including the significance of the information and the whistleblower’s assistance. An award is not automatic: the government must bring a qualifying action, collect sanctions, and determine that the person meets the eligibility requirements.

Who Runs the Program?

Congress created the program through federal law. The Treasury Department is responsible for administering it, and FinCEN handles the program’s operational role, including receiving information about potential violations. FinCEN’s website, fincen.gov, is the official place to find current program information and submission instructions.

FinCEN https://dlf-ne.org/can-former-employees-file-a-bsa-whistleblower-claim/ is not the same as a bank regulator, a bank’s internal compliance department, or a private whistleblower law firm. It is a federal bureau. Depending on the facts, FinCEN may work with or refer information to other authorities. For example, a matter involving securities, tax, or sanctions issues may involve agencies with separate responsibilities.

Although a financial institution may have its own reporting and escalation procedures, an internal report is different from a submission to FinCEN. A person considering either route should think carefully about confidentiality, legal obligations, and possible retaliation risks.

Legal Origin and Timeline

Milestone What happened December 23, 2022 The Anti-Money Laundering Whistleblower Improvement Act of 2022 was enacted as part of the National Defense Authorization Act for Fiscal Year 2023. After enactment The law established an award framework for people who provide original information about qualifying violations and assist with enforcement actions. Current step People should check FinCEN’s website for the latest rules, instructions, and submission procedures before sending information.

The Act strengthened and expanded the BSA whistleblower framework. Among other changes, it established a statutory award range and included protections against certain forms of retaliation. The precise application of the law depends on the facts, the covered violation, and the applicable program requirements.

Who May Be Eligible?

Eligibility is not limited to bank employees. A person with relevant information may include a current or former employee, a contractor, a customer, a business partner, or someone outside the financial institution who learned about possible misconduct. A company or other legal entity generally is not itself the individual whistleblower contemplated by the award program.

Being close to a transaction or institution does not by itself make someone eligible. The person must provide information that meets the program’s requirements and must satisfy applicable exclusions. For example, eligibility can be affected by a person’s role, how the information was obtained, whether the person participated in the misconduct, and whether the person knowingly provides false information.

What Does “Original Information” Mean?

In practical terms, original information is information that is sufficiently new and useful to the government, rather than a repetition of facts already publicly available or already known to authorities. The statutory framework focuses on information derived from independent knowledge or independent analysis and provided voluntarily. The program’s detailed rules and the facts of a particular submission determine how these requirements apply.

For example, an employee might notice that a customer’s transactions are repeatedly kept just below a reporting threshold, while internal records show that the institution’s monitoring system was deliberately configured to ignore the pattern. That employee may have firsthand information and documents that are not obvious from public sources. By contrast, simply forwarding a news article about an already announced enforcement action may add little or no original information.

“Original” does not mean that the whistleblower must personally prove the entire case. A tip can identify people, accounts, transactions, systems, dates, or records that help authorities investigate. But speculation without a factual basis is less useful and may create legal risks if presented as fact.

What Violations May Qualify?

The program covers certain violations of the BSA and related laws. The relevant question is not simply whether conduct looks suspicious; it is whether the conduct may violate a law within the program’s scope. Examples can include:

• Suspicious Activity Reports: A financial institution may fail to file required SARs, file them late, or knowingly submit inaccurate information. A whistleblower could report facts suggesting that required reporting was deliberately suppressed or manipulated.
• Structuring: A person may break up cash transactions to evade reporting requirements. A whistleblower might identify repeated deposits or withdrawals designed to avoid a threshold, along with records showing the pattern was intentional.
• Customer Due Diligence (CDD): Covered institutions have obligations to identify and understand certain customer risks. Potential misconduct could involve knowingly deficient customer information, ignored red flags, or failures in required due-diligence processes.
• Recordkeeping: BSA-related rules require certain records to be maintained. Concealing, altering, or failing to keep required records may be relevant, depending on the applicable rule and facts.
• Related money-laundering violations: Information about conduct connected to money laundering or violations of covered BSA-related requirements may fall within the program’s scope.
• Some sanctions-related conduct: Sanctions issues may be relevant when they involve a law or enforcement action covered by the program. Not every sanctions violation automatically qualifies; sanctions programs can be administered under authorities separate from the BSA.

This list is illustrative, not a determination that every example qualifies for an award. A legal assessment may turn on the particular statute, regulation, agency action, and connection to the BSA program.

How SARs Fit In

A Suspicious Activity Report is a confidential report that certain financial institutions file with FinCEN when they identify activity that meets applicable reporting requirements. SARs are an important part of the government’s financial-crime detection system, but they are not the same thing as a whistleblower submission.

A person with information about suspicious activity should not assume they are authorized to take, copy, or disclose an actual SAR. SAR confidentiality rules restrict disclosure, and mishandling a SAR can create serious legal problems. In many situations, the safer approach is to describe the underlying facts—such as transactions, dates, account activity, or internal instructions—without reproducing or improperly disclosing a SAR. Whether particular information can be shared depends on the person’s role and the circumstances.

For instance, someone may be able to report that a manager instructed staff not to escalate a series of unusual transactions. That is different from distributing a confidential SAR or identifying its existence in a way prohibited by law. Get qualified legal advice if you are unsure what records you may lawfully provide.

How to Think About Making a Submission

FinCEN’s current instructions should guide any submission. A useful report is typically specific, organized, and clear about what the person knows firsthand versus what they believe or have heard from others. Do not alter records, access systems without authorization, or take documents in violation of law or workplace policy.

What to Do Next: A Practical Checklist

1. Write down the facts. Note dates, people, transactions, systems, and what you personally observed. Separate firsthand knowledge from assumptions.
2. Preserve information lawfully. Do not delete, edit, or remove records you are not authorized to take. Do not use a work laptop, work email, or employer network for sensitive personal communications.
3. Check the official source. Visit FinCEN.gov for current program requirements and submission instructions.
4. Consider speaking with an attorney. A lawyer experienced in whistleblower matters can help assess eligibility, confidentiality, employment risks, and whether the information is “original.”
5. Do not assume an award is guaranteed. The government decides whether to pursue a case, whether sanctions qualify, and whether an award is appropriate under the law.
6. Keep a careful record. Maintain a lawful record of when you sought advice and what you submitted, while protecting confidential information.

Retaliation and Confidentiality Considerations

The statute includes anti-retaliation protections for certain whistleblower activity. Those protections do not mean every workplace dispute will qualify as retaliation under the law, or that a person can safely disregard confidentiality, privacy, or record-handling rules. The timing and nature of the report, the person’s role, and the law that applies can matter.

Confidentiality also has limits. FinCEN may need to use information to investigate or coordinate with https://bizzmarkblog.com/what-counts-as-original-information-for-an-aml-whistleblower/ other authorities. A person should not promise themselves absolute anonymity or assume that an employer will never infer who raised a concern. An attorney can explain options for making a submission and discuss practical steps to reduce avoidable exposure.

The Bottom Line

The Anti-Money Laundering Whistleblower Improvement Act of 2022 created a federal award program for people who provide original information about certain BSA and related violations. The Treasury Department administers it through FinCEN. Qualifying information may concern issues such as SAR failures, structuring, customer due diligence, recordkeeping, or some related sanctions conduct—but coverage depends on the specific law and facts.

Before reporting, check FinCEN’s official guidance, distinguish firsthand facts from assumptions, and protect confidential records. If the information involves a SAR, do not disclose the SAR itself without understanding the applicable restrictions. A whistleblower attorney can help evaluate eligibility and next steps, but no one can guarantee that a report will lead to an enforcement action or award.