On April 1, 2026, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury (“Treasury”), published a Notice of Proposed Rulemaking titled “Whistleblower Incentives and Protections.” The proposed rule would implement and formalize a statutory whistleblower program (established in 2021) that is designed to incentivize reporting of violations of anti-money laundering (AML) and sanctions laws. It would replace FinCEN’s existing, narrower “rewards for informants” regulation and establish a structured framework for submissions, award determinations, confidentiality protections, and appeals.
FinCEN Background and Legislative Framework
In section 6314 of the Anti-Money Laundering Act of 2020, as amended by the Anti-Money Laundering Whistleblower Improvement Act (enacted in 2022), Congress significantly expanded a prior informant program, directing Treasury to create a mandatory award structure and to strengthen whistleblower protections. The program seeks information on violations of several key statutes, including:
- The Bank Secrecy Act,
- The International Emergency Economic Powers Act,
- The Trading With the Enemy Act, and
- The Foreign Narcotics Kingpin Designation Act.
These statutes collectively form the backbone of U.S. AML and economic sanctions enforcement. The program is intended to “safeguard the financial system,” support national security objectives, and enhance enforcement of laws targeting money laundering, terrorist financing, sanctions evasion, and related misconduct.
Prior to the 2020 Act and 2022 amendments, Treasury had authority to pay rewards to informants, but the program was discretionary, and awards were capped at relatively low amounts. Congress revised the statute to create a more formalized whistleblower program modeled in part on other federal whistleblower programs. The amendments established:
- A mandatory award range of 10 to 30 percent of monetary sanctions collected in qualifying enforcement actions;
- A minimum monetary threshold (over $1 million in sanctions) for an action to qualify as a “covered action;”
- Express anti-retaliation protections; and
- Confidentiality safeguards.
The announcement of the proposed new rule reflects the Treasury’s effort to operationalize those statutory directives through detailed regulatory procedures. As described in more detail below, the proposed rule is organized to track the lifecycle of a whistleblower’s interaction with the government, beginning with the submission of information and continuing through the receipt of an award.
Key Provisions of the Proposed Rule
Definitions and “Covered Actions”
The proposed rule begins by defining core terms such as “whistleblower,” “original information,” and “covered action.” According to the proposed rule, a “covered action” generally refers to a judicial or administrative action brought by Treasury (or, in certain cases, the Department of Justice) under one of the covered statutes that results in monetary sanctions exceeding the statutory threshold. The emphasis on definitions is significant: eligibility for an award depends not merely on reporting misconduct, but on providing qualifying “original information” that leads to a successful enforcement outcome.
Submission of “Original Information”
The proposed rule outlines formal procedures for submitting tips. Whistleblowers would be required to submit information in a prescribed format, including certifications regarding the truthfulness of the submission. Key elements include:
- Information must be provided voluntarily;
- It must be original, meaning derived from independent knowledge or analysis and not already known to the government (subject to certain exceptions); and
- Submissions must follow specified procedures to preserve eligibility.
The proposed rule also addresses anonymous submissions, requiring representation by counsel in such circumstances.
Award Eligibility and Determination
The statute requires awards of 10–30 percent of monetary sanctions collected to eligible whistleblowers, and the proposed rule elaborates on how FinCEN would determine the precise percentage within that range. The proposed rule identifies factors that may increase or decrease an award amount, such as:
- The significance of the information provided.
- The degree of assistance provided by the whistleblower.
- The programmatic interest in deterring particular types of violations.
- Any culpability or delay attributable to the whistleblower.
The proposed rule also makes clear that awards are based on amounts actually collected, not merely ordered, and establishes a presumptive maximum award of 30 percent when the total monetary penalties equal $15 million or less.
Exclusions and Limitations
The proposed rule addresses categories of individuals who may be excluded from eligibility as a whistleblower or subject to limitations. These include certain government officials and, in some circumstances, individuals who obtain information through privileged or compliance functions. The proposed rule also includes a “no amnesty” provision, clarifying that participation in the whistleblower program does not immunize an individual from liability for their own misconduct. As described in the preceding section, culpability may be considered when determining award percentages.
Confidentiality Protections
Consistent with the statute, the proposed rule includes confidentiality provisions designed to protect the identity of whistleblowers. The government would be restricted from disclosing identifying information, subject to exceptions required by law or necessary in enforcement proceedings. The proposed rule also reflects statutory anti-retaliation protections, which prohibit employers from discharging, demoting, suspending, threatening, harassing, or otherwise discriminating against whistleblowers for lawful acts done in providing information or assisting in proceedings.
Award Application and Adjudication Process
After a covered action results in qualifying sanctions, eligible whistleblowers would be required to submit a formal award application within a specified period. The proposed process includes procedures for:
- Publishing a Notice of Covered Action;
- Submission of an award claim;
- Preliminary determinations on whistleblower awards issued by FinCEN;
- An opportunity to contest adverse award determinations; and
- Final award determinations by the designated Treasury official.
The proposed rule also provides for administrative appeals within Treasury.
Comment Period
Treasury invites public comment on all aspects of the proposed rule, including definitions, award calculation factors, procedural requirements, and confidentiality provisions. Comments must be submitted by June 1, 2026. If finalized, the rule would mark a substantial development in federal AML and sanctions enforcement, formalizing the AML Whistleblower Program.
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