AML / BSA Whistleblower Program FAQs

Published October 22, 2026

By Steve Levine

Editor-in-Chief · 7 min read

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Witnessing financial crimes at work places individuals in a difficult position. The information they hold may be significant to regulatory investigations, yet coming forward can feel risky without knowing what legal protections exist or whether the effort is likely to produce results. The Anti-Money Laundering Whistleblower Improvement Act of 2022 formalized a program that offers both financial rewards and legal protections to people who report violations of the Bank Secrecy Act and related anti-money laundering laws. The following questions address how the program works and what potential whistleblowers should understand before deciding to file.

What Is the AML/BSA Whistleblower Program?

The program was established by the Anti-Money Laundering Whistleblower Improvement Act of 2022, which was signed into law on December 23, 2022, as part of the National Defense Authorization Act for Fiscal Year 2023. The legislation created a formal reward structure for individuals who provide original information about Bank Secrecy Act (BSA) violations that lead to successful enforcement actions. Before this legislation, no AML-specific whistleblower incentive program existed with a comparable award structure available to reporters of BSA violations. The Financial Crimes Enforcement Network (FinCEN), accessible through FinCEN's official site, is the Treasury bureau responsible for implementing and enforcing BSA requirements and plays a central role in how whistleblower complaints are processed and reviewed.

Who Can File Under This Program?

Eligibility is broad. Any individual with original information about a BSA or AML violation can potentially submit a report. This includes current and former employees of financial institutions, contractors, auditors, outside counsel, and others who have direct knowledge of the conduct. Non-U.S. citizens are not automatically excluded, though specific circumstances may affect their eligibility. Individuals who personally participated in the conduct being reported face limitations on their eligibility, and their involvement may reduce or eliminate any award they would otherwise receive. The key requirement is that the information must be original, meaning it comes from the filer's own direct knowledge or analysis rather than from public sources or prior disclosures to regulators.

What Types of Violations Qualify?

Qualifying conduct includes violations of the BSA and the broader network of AML statutes that financial institutions are required to follow. Common examples include failing to file Suspicious Activity Reports (SARs) when transactions trigger reporting obligations, deliberately structuring transactions to fall below currency reporting thresholds (a practice known as "structuring"), maintaining deficient Customer Due Diligence (CDD) programs, failing to keep records required by law, and processing transactions for individuals or entities subject to sanctions. The scope is not limited to large-scale fraud. Persistent compliance failures that an institution has failed to address internally can qualify even when individual transactions appear ordinary. What matters is whether the conduct violates the applicable statutes, not whether it produced a high-profile outcome.

How Are Awards Calculated?

Under the Anti-Money Laundering Whistleblower Improvement Act of 2022, a whistleblower whose information leads to enforcement action resulting in monetary sanctions exceeding $1 million is eligible for an award between 10% and 30% of the total sanctions collected. The percentage within that range depends on several factors: the significance and usefulness of the information provided, the degree to which the whistleblower cooperated with investigators, whether the whistleblower reported internally through compliance channels before approaching the government, and the culpability of the whistleblower in the underlying conduct, if any. Awards can be substantial in cases involving large financial penalties, and the program's structure is designed to incentivize early, detailed, and cooperative reporting.

Do I Need an Attorney to File?

No law requires an attorney to submit a report, but having one provides substantial practical advantages. A whistleblower attorney can evaluate whether your information qualifies under the program, help frame the submission to maximize its usefulness to investigators, maintain your anonymity throughout the process, and provide guidance if retaliation occurs. Most whistleblower attorneys work on a contingency basis, collecting a percentage of any award rather than charging upfront fees, which means legal representation is generally accessible regardless of financial situation. Those weighing their options may find detailed procedural context in resources that explain what it means to pursue a claim as an AML BSA whistleblower, including what questions to ask when selecting an attorney and how the submission process unfolds from initial contact through award determination.

Can I File Anonymously?

Whistleblowers who are represented by an attorney may submit reports anonymously. The attorney acts as the point of contact with regulators throughout the anonymous filing period, and the whistleblower's identity is not disclosed unless required by law or unless an award is granted. If an award is granted, the whistleblower must identify themselves before any payment is made. Filing without an attorney eliminates the ability to maintain anonymity in a meaningful way, since the filer must provide contact information and is directly identifiable to the agency. The protections that come with anonymous filing are most effective when an experienced attorney manages the submission from the outset.

What Retaliation Protections Exist?

The 2022 legislation includes anti-retaliation provisions protecting employees who report AML and BSA violations from adverse employment actions. Protected activity includes reporting to a federal agency, reporting internally through an employer's compliance function, and participating in any investigation or proceeding related to such a report. Covered adverse actions include termination, demotion, suspension, reduction in pay or hours, harassment, and other discriminatory treatment taken because of the whistleblower activity. An employee who experiences retaliation may file a complaint with the relevant agency and, if the claim succeeds, can recover remedies including reinstatement, back pay, and attorney's fees. Documenting any changes in employment conditions, supervisory behavior, or workplace treatment after filing strengthens a retaliation claim considerably.

What Happens After a Report Is Filed?

After submission, the relevant agency reviews the information to assess whether it meets the threshold for investigation. The review process is not fast. Investigations into BSA violations at financial institutions can take years, particularly when they involve complex transaction patterns, multiple entities, or international components. Whistleblowers are generally not updated on investigation progress due to the confidentiality requirements that govern federal inquiries. This extended waiting period can be stressful, especially for those still employed at the institution being investigated. Once an enforcement action concludes and sanctions are collected, the whistleblower may apply for an award by demonstrating that their original information contributed to the outcome. The award claim process involves its own procedural steps, and representation by an attorney at that stage is advisable.

What Should I Do Before Filing?

Before submitting a report, document what you know as thoroughly as possible. Keep records in a secure location that is not connected to your employer's systems, since using work devices or accounts to collect information may raise questions about confidentiality agreements or trade secret obligations. Avoid discussing your intentions with colleagues. If you are still employed at the institution when you file, consulting an attorney before taking any steps protects you from procedural errors that could weaken your submission or eliminate your anonymity protections. Filing earlier rather than later is generally preferable because the program rewards original information, and delaying increases the chance that regulators learn of the violation from another source before your report arrives.

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