Delays to FinCEN Whistleblower Program Put US Financial System at Risk

The US Congress authorized the Financial Crimes Enforcement Network (FinCEN) in 2022 to establish a whistleblower rewards process, using tips from insiders to strengthen enforcement against money laundering, terrorist financing and sanctions evasion. Further delays could prevent FinCEN from obtaining critical financial intelligence promptly, increasing risks to the US financial system.

FinCEN has yet to issue final rules for the whistleblower program. The new rules are expected to offer people who provide actionable tips rewards of up to 30% of enforcement penalties. Experts say staffing shortages and inadequate funding have constrained the agency, urging the US Treasury Department to expand its workforce and quickly complete the rulemaking process that has been delayed since 2022.