Labor & Employment Law Daily Wrap Up, AGENCY NEWS—FinCEN unveils proposed rulemaking to protect, reward whistleblowers, (Apr 1, 2026)

By Joe Cox, J.D.

This action potentially adds details and teeth to 2020 and 2022 legislation that established FinCEN’s whistleblower programs.

The Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has released a Notice of Proposed Rulemaking for publication in the April 1 Federal Register to implement a whistleblower program by establishing a clear framework of incentives and protections to encourage individuals to report tips on fraud-related violations of the Bank Secrecy Act, Foreign Assets Control sanctions, and other laws. If enacted, the proposed rule will fulfill the program envisioned by the previously passed Anti-Money Laundering Act in 2020 and the Anti-Money Laundering Whistleblower Improvement Act in 2022.

Secretary of the Treasury Scott Bessent hailed the action, stating, “At Treasury, we follow the money, and we strongly encourage individuals to come forward with credible tips to help safeguard our financial system.” FinCEN recently launched a portal for whistleblowers. That said, while protecting and aiding whistleblowers was clearly a priority to Congress, the process to implementation of the FinCEN program has not been a hasty one.

Delay in enactment. In February 2024, a bipartisan group of senators wrote FinCEN Director Andrea Gacki to express concern about the delays in implementation. The senators then termed it “essential [that] FinCEN prioritize the implementation of the AML whistleblower program” (see Banking and Finance Law Daily, Feb. 6, 2024).

However, after two years of inaction, another duo of bipartisan senators renewed the call for Director Gacki to act. Sens. Chuck Grassley (R-Iowa) and John Fetterman (D-Pa.) noted that the whistleblower program was “a critical tool for America’s on-going fight against terrorists, drug-traffickers, and sanctioned state actors who are threats to our national security” (see Banking and Finance Law Daily, Feb. 4, 2026).

Terms of the proposed rule. The proposed rule includes provisions establishing protections for whistleblowers as well as procedures for whistleblowers to share information and also defines the terms of award applications and eligibility criteria. The proposal suggests a 10 percent to 30 percent award rate of collected monetary penalties for individuals whose tip leads to a successful enforcement action.

In the appendices with the proposed rule are both the forms for tips, complaints, or referrals and to apply for an award arising from a tip, complaint, or referral. FinCEN will collect comments for 60-days and welcomes feedback on: (i) the accuracy of the agency’s estimate of the burden of the collection of information; (ii) ways to enhance the quality, utility, and clarity of the information to be collected; (iii) ways to minimize the burden of the collection of information on reporting persons, including through the use of technology; and (iv) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services required to provide information. Comments are due June 1, 2026.

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