On April 1, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice of proposed rulemaking (Proposed Rule) that would establish procedures governing whistleblower submissions, award eligibility and determinations, and anti-retaliation protections, primarily in connection with sanctions, Bank Secrecy Act (BSA)/anti-money laundering (AML), Outbound Investment Security Program (OISP) and Data Security Program (DSP) enforcement.

Key Takeaways

• Awards would generally range from 10% to 30% of monetary penalties exceeding $1 million collected in successful enforcement actions.
• Certain “insider” whistleblowers (e.g., individuals who learn of potential violations through compliance or audit responsibilities) would generally be subject to a 120-day waiting period before reporting to FinCEN.
• The proposed framework would not confer immunity for a whistleblower’s own misconduct and would apply a criminal conviction-based standard for award disqualification.
• Comments on the Proposed Rule are due June 1, 2026.

Companies should consider promptly assessing internal reporting and escalation channels, non-retaliation controls, and sanctions/AML investigation and remediation playbooks, and adopting compliance programs to identify and appropriately address transactions covered by the OISP and DSP; conducting a tabletop exercise to confirm roles, timelines, and documentation expectations; and evaluating whether to submit comments by June 1, 2026.

Overview of the Proposed Rule

If adopted, the Proposed Rule would implement the Treasury’s whistleblower program by offering monetary awards to individuals who provide timely, credible and specific “original information” that leads to successful enforcement actions by the U.S. Department of the Treasury or the U.S. Department of Justice (DOJ), including matters involving violations of the BSA/AML regulations administered by FinCEN, U.S. economic sanctions administered by the Treasury’s Office of Foreign Assets Control (OFAC), the OISP regulations administered by the Treasury’s Office of Investment Security or the DSP regulations administered by the DOJ. If adopted, the Proposed Rule would revise the regulations implementing the BSA in 31 C.F.R. Part 1010, including specifically those currently set forth at § 1010.930 (Rewards for informants).

Under the Proposed Rule, eligible whistleblowers could receive awards ranging from 10% to 30% of monetary penalties exceeding $1 million actually collected in a successful enforcement action. The Treasury would determine award amounts based on factors such as the significance of the information provided, the degree of assistance rendered and law enforcement interests.

Consistent with recent enforcement trends, FinCEN’s stated objective for the Proposed Rule is to “enhance the ability of Treasury and DOJ to enforce the BSA, U.S. trade and economic sanctions, the Outbound Investment Security Program, and the Data Security Program, and to further other U.S. government law enforcement efforts.” Relatedly, FinCEN also recently launched a portal for whistleblowers to submit tips.

Tip Submission and Award Process

The Proposed Rule would establish procedures for submitting whistleblower tips and for applying for an award after an enforcement action is resolved. Although FinCEN has been accepting whistleblower tips, the Proposed Rule would formalize the process for evaluating submissions and adjudicating award claims.

120-Day Waiting Period for Certain Compliance Personnel

The Proposed Rule includes a waiting-period mechanism intended to preserve the role of internal compliance programs. Whistleblowers who learn of potential violations through the performance of certain internal functions (e.g., compliance or audit) would generally be required to wait at least 120 days before reporting to FinCEN. The Treasury’s stated purpose is to provide companies time to identify, investigate and remediate potential violations internally, while reducing incentives to bypass internal reporting channels.

Culpability, Immunity and Award Eligibility

The proposed rule would not provide immunity for violations in which a whistleblower was involved, and an individual could remain subject to civil or criminal exposure regardless of whether the individual submits information to FinCEN. The Proposed Rule would apply a criminal conviction-based disqualification standard: a whistleblower would be ineligible for an award only if convicted of a criminal offense related to the reported violation. Involvement in the underlying conduct alone would not automatically result in ineligibility.

Anti-Retaliation Protections

Consistent with statutory requirements, the proposed rule would reinforce protections against retaliation for whistleblowers who provide information to the Treasury, regardless of whether they ultimately receive an award.

Practical Implications for Companies

• The Proposed Rule may increase the volume and speed of reporting of potential sanctions and AML compliance issues by employees, former employees and third parties. Significant potential awards may also increase the likelihood that unresolved internal concerns are escalated to regulators and prosecutors.
• Although the 120-day waiting period may benefit effective compliance programs, it also heightens the importance of timely triage, investigation and remediation once concerns are raised internally. Delays or incomplete remediation during that period may increase the risk of reporting to FinCEN and other authorities.
• Companies should review and, where appropriate, update internal reporting and escalation channels, non-retaliation policies, and sanctions/AML investigation and remediation playbooks, adopt compliance programs to identify and appropriately address transactions covered by the OISP and DSP,  and consider a tabletop exercise to confirm roles, timelines, and documentation expectations in light of the proposed 120-day framework.
• Companies should evaluate whether to submit comments on the Proposed Rule to FinCEN by the June 1, 2026 deadline. FinCEN invites comments on all aspects of the Proposed Rule, and specifically seeks comments in response to 12 sets of questions.