The Anti-Money Laundering Act of 2020 (“AMLA”) significantly strengthened whistleblower protections and incentives by establishing the Financial Crimes Enforcement Network (“FinCEN”) Whistleblower Program. Before the AMLA, FinCEN could receive tips but lacked the authority to offer financial rewards. The AMLA changed this by allowing whistleblowers to receive rewards amounting to 10-30% of penalties collected in enforcement actions over $1 million.

Congress enacted the AMLA in response to the recognized need for insider reporting to uncover complex money laundering schemes missed by traditional enforcement methods. The massive penalties imposed in prior AML cases, such as BNP Paribas ($8.9 billion in 2014) and HSBC ($1.92 billion in 2012), highlighted widespread compliance failures but relied heavily on government investigations rather than whistleblower input.

According to Constantine Cannon whistleblower partner Marlene Koury, “Given how sophisticated money laundering schemes have become, whistleblowers are more critical than ever in exposing financial misconduct. FinCEN’s Whistleblower Program is a powerful tool in enforcing the Bank Secrecy Act.”

Although it remains unknown how many of the AML recoveries below stemmed from whistleblower tips, historically, whistleblowers have played a crucial role in exposing financial institutions’ failures to prevent illicit activity. With the government increasingly relying on insider reporting, it is likely that whistleblower tips played a significant role in several of these enforcement actions.

Binance – $3.4 Billion Penalty (December 2022)

In December 2022, FinCEN announced a historic $3.4 billion settlement with Binance, marking the largest penalty in U.S. Treasury and FinCEN history. Binance admitted to willfully operating as an unregistered money services business while obscuring its ties to the U.S. and maintaining its most commercially important U.S. customers.

TD Bank – $1.3 Billion Penalty (October 2024)

In October 2024, FinCEN assessed a record $1.3 billion civil money penalty against TD Bank for violations of the BSA. The bank admitted to significant AML program failures, including inadequate transaction monitoring, which allowed illicit activities such as drug trafficking and terrorist financing to go undetected. This penalty is the largest against a depository institution in U.S. Treasury and FinCEN history. The $1.3 billion penalty is on top of $1.8 billion in penalties to resolve DOJ charges of money laundering and other violations of the BSA. In total, TD Bank paid $3.1 billion for its violations of the BSA.

Capital One – $390 Million Penalty (January 2021)

In January 2021, FinCEN assessed a $390 million civil money penalty against Capital One for willfully failing to implement and maintain an effective AML program. The bank admitted to failing to file thousands of suspicious activity reports (SARs) and currency transaction reports (CTRs) from at least 2008 through 2014, allowing millions of dollars in suspicious transactions to go unreported.

USAA Federal Savings Bank – $140 Million Penalty (March 2022)

In March 2022, FinCEN took enforcement action against USAA Federal Savings Bank for willful violations of the BSA. The bank was penalized $140 million for failing to implement and maintain an effective AML program and for failing to report thousands of suspicious transactions. FinCEN credited USAA $60 million based on its payment to the Office of Comptroller Currency for related violations.

Bittrex – $29 Million Penalty (October 2022):

In October 2022, FinCEN announced a $29 million settlement with the crypto exchange Bittrex for failing to maintain an adequate BSA compliance program. Bittrex’s willful failures meant the company had failed to file any SARs for over three years and had specifically failed to flag hundreds of transactions involving sanctioned jurisdictions.

Read Five of the Top AML Enforcement Actions by FinCEN at constantinecannon.com