us

216.73.216.133

AMLA Adds New Protections and Financial Incentives for US Whistleblowers

n-img-amla

Anti Money Laundering Act 2020, has amended the recently enacted AML whistleblower improvement act, which significantly expanded the legal protections and financial incentives for whistleblowers to report AML violations.

FinCEN (Financial Crimes Enforcement Network) will soon propose regulations to implement the new whistleblower provisions. FIs (Financial Institutions) and other firms that comply with AML and sanctions should evaluate their existing internal whistleblower programs to ensure compliance with the new law and encourage employee whistleblowing.

The maximum award has been increased for eligible whistleblowers that voluntarily provide original information to the treasury department, DOJ or employer. Under the initiative, whistleblower awards were capped at $150,000. Whistleblowers are eligible for awards not less than 10% and 30% of financial sanctions gathered by the government for AML and sanctions violations. The enforcement actions have resulted in penalties worth millions. In several recent cases, the penalties exceeded $1 billion. 

Employment protection for whistleblowers is also included in AMLA. For instance, the act prohibits employers from discriminating against whistleblowers in terms and conditions of employment because of any lawful action by the Whistleblower in providing information to FinCEN, DOJ, or any other member of the committee. 

The Act also protects the Whistleblowers that provide tips on the misconduct of a person with the supervisory authority to investigate or terminate the misconduct. 

This way, AMLA protects internal and external whistleblowing by employees. 

Relief for individuals who prevail in complaints with the Department of Labor or in Federal lawsuits includes,

  1. Reinstatement with the same seniority level that the individual would have had but for the criminal retaliation.
  2. Two times the misconduct amount of back-pay otherwise owed to the individual, with interest.
  3. Compensatory damages must carry litigation amounts, witness charges and reasonable attorney’s fees. 
  4. Another appropriate remedy with respect to the conduct is also the subject of the complaint as applicable. 

As updated, the AMLA and FinCEN’s impending rules will dramatically improve the whistleblower roles under US AML sanctions and laws. FIs and other firms will also revise their internal programs to minimise any impasse laws and regulations on their operations. 

Suggested Read:

Increasing Financial Crimes Call to Establish a European Center of Excellence For AML Compliance

Leaked Draft: EU Plans to Ban Privacy Enhancing Crypto Coins

MEPs Disclose Plans To Crack Down On Money Laundering – AMLA Reports

Related Posts

News

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Explore More

News

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Explore More

News

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

Explore More

News

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

Explore More

News

UAE Central Bank hit Financial Firms with fines due to compliance failures

UAE Central Bank hit Financial Firms with fines due to compliance failures

Explore More

News

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Explore More

News

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Explore More

News

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Explore More

News

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Explore More

News

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

Explore More

News

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

Explore More

News

UAE Central Bank hit Financial Firms with fines due to compliance failures

UAE Central Bank hit Financial Firms with fines due to compliance failures

Explore More

News

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Explore More

News

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started