A bipartisan bill pending in Congress, the Illicit Cash Act, is making news for its anti-money laundering provisions.

The whistleblower provisions of the Illicit Cash Act follow that of historically successful U.S. whistleblower laws, such as the False Claims Act.

Consistent with the qui tam provisions of the False Claims Act, whistleblowers who report economic crimes under the Illicit Cash Act would receive between 10-30% of the sanctions collected by the government for their efforts.

The Illicit Cash Act will have a transnational application, meaning whistleblowers who report money laundering and terrorist financing in countries that lack functional regulatory administrations will be able to use this U.S. reward law.

According to the sponsors, the Illicit Cash Act would “update decades-old anti-money laundering” laws by giving “law enforcement the tools they need to fight criminal networks.”

 

Read Stephen Kohn’s article, originally posted in Mondaq: Can Whistleblowers Stop Money Laundering? An Analysis Of The Illicit Cash Act’s Whistleblower Provision