ABA-AMLA and Whistleblowers: Considerations During the 'Gray Period'.
ENPNewswire-November 15, 2021--ABA-AMLA and Whistleblowers: Considerations During the 'Gray Period'
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Release date- 12112021 - On January 1 of this year, Congress enacted the Anti-Money Laundering Act of 2020 as part of the National Defense Authorization Act.
AMLA significantly revised the existing whistleblower provisions of the Bank Secrecy Act, and it created a new enforcement regime modeled on the highly successful whistleblower program of the US Securities and Exchange Commission.
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Although the Financial Crimes Enforcement Network has begun the rulemaking process for some aspects of AMLA, there is no deadline for the enactment of rules implementing the whistleblower provisions-and the US Department of the Treasury did not include such rules on its spring 2021 regulatory agenda.
Notably, however, whistleblowers do not need to wait for the rulemaking process to be complete to file a complaint with their employer or the government. In other words, the doors are open to whistleblowers now. So, although there is still much to come with the implementation of the revised statute, institutions should consider the implications of AMLA on their existing whistleblower programs, the expanded legal risk and how they can supplement their existing AML compliance programs now during this time between the enactment of the statute and the promulgation of the program rules-something we call the 'gray period.'
This article discusses the background of the applicable AML Act provisions, compares them to the SEC's whistleblower program and identifies key takeaways for institutions to consider now.
Overview
Prior to AMLA, the BSA's whistleblower provisions consisted of five sparse sentences that were rarely invoked. Generally, the law allowed whistleblower rewards for individuals who provided information relating to a violation of the BSA, if such information led to a recovery of a criminal fine, civil penalty, or forfeiture exceeding $50,000. The term 'whistleblower' was not defined, much less anything else.
Learning from other successful whistleblower programs, Congress sought to bolster AML enforcement by enhancing these provisions in AMLA. For example, Congress has now defined 'whistleblower' to include employees who provide information to an employer, including as a part of their job duties, in addition to those who report to the Treasury Department or the Department of Justice.
AMLA also increased the amount of potential awards for individuals whose reports lead to successful enforcement actions...
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