Who Can Serve as a BSA Whistleblower?

Are You Eligible to Serve as a Bank Secrecy Act (BSA) Whistleblower? Here’s What You Need to Know

The federal government relies heavily on whistleblowers to report violations of the Bank Secrecy Act (BSA). The BSA serves a critical role in protecting the integrity of the U.S. financial system; and, when financial institutions and other entities violate the BSA, substantial monetary sanctions will often be warranted.

So, who can serve as a BSA whistleblower?

The BSA whistleblower provisions establish strict eligibility requirements for coming forward with information about compliance violations and illegal conduct. With that said, many individuals may be eligible to come forward. Our whistleblower attorneys work with current employees, former employees, and other individuals, and we work directly with the appropriate federal authorities on behalf of our clients.

Eligibility to Serve as a Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) Whistleblower

There are three basic eligibility requirements for serving as a Bank Secrecy Act (BSA) whistleblower. These same eligibility requirements generally apply to reporting violations of the Anti-Money Laundering Act (AMLA), Federal Credit Union Act (FCUA), Federal Deposit Insurance Act (FDIA), International Emergency Economic Powers Act (IEEPA), National Defense Authorization Act (NDAA), Trading with the Enemy Act (TWEA), and other pertinent federal statutes as well. They also apply to reporting violations of Office of Foreign Assets Control (OFAC) sanctions.

The basic eligibility requirements are as follows:

1. Original Information

To serve as a BSA whistleblower, you must be able to come forward with “original information” about a violation of federal law or a federal sanction. This means that you must have independent knowledge of a violation that is not currently known to the federal government. This independent knowledge can be the result of either first-hand access or an independent analysis.

The original information that a BSA whistleblower discloses must be sufficient to warrant a federal investigation. While BSA whistleblower complaints frequently lead to government enforcement actions, you do not need to have information that is sufficient to warrant civil or criminal prosecution on its own. Once you file your whistleblower complaint, the appropriate federal regulators will conduct an investigation to gather the additional evidence they need.

2. Disclosure of a BSA Violation or a Violation of U.S. Sanctions Laws

If you come forward as a BSA whistleblower, the information you disclose must be indicative of a violation of the Bank Secrecy Act, one of the other statutes listed above, the implementing regulations under the statutes, or federal financial sanctions. Some examples of common grounds for filing BSA whistleblower complaints include:

• Anti-money laundering (AML) violations
• Failure to file currency transaction reports (CTRs)
• Failure to file suspicious activity reports (SARs)
• Failure to maintain an effective AML compliance program
• OFAC sanctions evasion
• Violation of the BSA’s anti-retaliation provisions
• Other criminal violations related to these offenses (i.e., conspiracy, bank fraud, and wire fraud)

BSA whistleblowers can file complaints against financial institutions, money services businesses, and other entities. The BSA’s anti-retaliation provisions prohibit all entities from retaliating against current or former employees who have blown the whistle, and BSA whistleblowers are entitled to monetary awards when their protected disclosures lead to successful enforcement actions. These awards are calculated as a percentage of the monetary penalties and/or other monetary sanctions collected.

3. Filing Through the Appropriate Channels

To qualify for the available whistleblower protections and a whistleblower reward (in the event of a successful enforcement action), BSA whistleblowers must make their disclosures through the appropriate channels. The primary options are as follows:

The Financial Crimes Enforcement Network’s (FinCEN) New Whistleblower Program

The Financial Crimes Enforcement Network (FinCEN) has a new AML whistleblower program that includes provisions for both whistleblower protections and whistleblower awards. FinCEN accepts whistleblower complaints involving violations of the BSA and other federal AML laws, as well as various other statutory and regulatory violations. Under FinCEN’s anti-money laundering whistleblower program, eligible whistleblowers can receive awards paid out of the bureau’s Financial Integrity Fund (FIF).

The U.S. Department of Justice’s (DOJ) Corporate Whistleblower Program

The U.S. Department of Justice (DOJ) accepts certain AML-related complaints under its corporate whistleblower program. If you are eligible to come forward as a BSA whistleblower, our attorneys can determine whether it makes the most sense for you to file your complaint with FinCEN or the DOJ.

The Commodity Futures Trading Commission (CFTC) or Securities and Exchange Commission (SEC) Whistleblower Program

In some cases, whistleblowers can file BSA-related complaints with other federal regulators as well. For example, the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) both maintain active whistleblower reward programs. We represent CFTC and SEC whistleblowers as well, and we can also work with these government agencies on your behalf if warranted.

Who is Not Eligible to Serve as a BSA Whistleblower?

While most individuals who meet the three criteria listed above are likely to qualify as prospective whistleblowers, there are some exceptions. For example, the following individuals generally are not eligible to serve as BSA whistleblowers—though they may be eligible to come forward through other means:

• Federal Government Personnel – As a general rule, federal government personnel are not eligible to receive whistleblower awards under the BSA if they come forward within the scope of their employment. However, they may be eligible to come forward under other federal whistleblower provisions, and we serve as legal counsel for federal employees (and former federal employees) who need to expose wrongdoing as well.
• Individuals Who May Face Criminal Prosecution (Subject to Exceptions) – Individuals who are at risk of facing criminal prosecution as a result of the wrongdoing in question may not be eligible to serve as whistleblowers. However, there are exceptions; and, if you are not eligible to serve as a BSA whistleblower, coming forward through other appropriate means could be essential for mitigating your legal risk. Contact us if you need to know more.

When you schedule a free initial consultation at Oberheiden P.C., our BSA whistleblower lawyers will work closely with you to assess your options and help you make informed decisions about your next steps. If you decide to come forward, we will work with FinCEN, the DOJ, and/or other government agencies on your behalf as appropriate, and we will continue to advise you throughout the process.

FAQs: Reporting Anti-Money Laundering and Sanctions Violations as a Bank Secrecy Act (BSA) Whistleblower

Schedule a Free and Confidential Consultation with a BSA Whistleblower Lawyer at Oberheiden P.C.

If you would like more information about serving as a BSA whistleblower, our lawyers can explain everything you need to know in order to make informed decisions about your next steps. To schedule a free and confidential consultation with a senior BSA whistleblower lawyer at Oberheiden P.C., call 888-680-1745 or tell us how we can contact you online today.

Further Information About Our BSA Whistleblower Lawsuit Attorney Services

• Bank Secrecy Act (BSA) Whistleblower Lawsuit Attorney
• Do I Need to Hire a BSA Attorney?
• Bank Secrecy Act Awards