Financial Crime World

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FinCEN Sees Surge in Whistleblower Tips Amidst Stringent Enforcement Efforts

In a significant development, FinCEN has received over 240 unique tips since the program’s inception, many of which have been highly relevant to Treasury’s top priorities. The agency is now incentivizing whistleblowers who provide original information about certain violations of the Bank Secrecy Act (BSA) or economic sanctions by offering awards ranging from 10 to 30 percent of penalties collected if their tips lead to successful enforcement actions.

Commitment to Compliance

In a speech today, FinCEN Director highlighted the agency’s commitment to promoting further compliance in non-traditional sectors through a firm approach to enforcement. The director shared several recent cases that demonstrate the importance of effective anti-money laundering (AML) programs and robust reporting requirements.

Recent Enforcement Actions

  • $1.5 million penalty against Kingdom Trust Company: FinCEN imposed a $1.5 million civil money penalty on Kingdom Trust Company for willful failure to file suspicious activity reports (SARs). The case highlighted the need for trust companies to grow their compliance programs in real-time, proportionate to the risks associated with business expansion.
  • $3.4 billion penalty against Binance: FinCEN brought a landmark enforcement action against Binance, the world’s largest virtual asset service provider, imposing a $3.4 billion penalty and sending a strong message about the importance of AML controls and reporting requirements in the cryptocurrency space.
  • Individual enforcement action against Gyanendra Kumar Azre: FinCEN took enforcement action against an individual, Gyanendra Kumar Azre, who failed to register his MSB with FinCEN and implement adequate AML controls during his tenure as BSA Officer at a New York credit union. As part of the penalty, Azre was banned from participating in the conduct of affairs of a BSA-regulated financial institution for five years.

Commitment to Protection and Justice

The director emphasized that these enforcement actions are part of FinCEN’s ongoing efforts to protect the U.S. financial system from harm and promote justice for those who seek to harm lives and livelihoods. The agency is committed to collaborating with authorities, private industry, and compliance professionals to promote effective AML practices and ensure the integrity of the financial system.

Partnership with Stakeholders

FinCEN looks forward to continuing its partnership with stakeholders in Puerto Rico and worldwide to combat money laundering and terrorist financing. The agency’s efforts are crucial to safeguarding the global financial system and promoting a safer and more secure future for all.