Overview

The Anti-Money Laundering Whistleblower Improvement Act updated FinCEN’s AML whistleblower program to cover violations of the International Emergency Economic Powers Act (IEEPA), the Trading with the Enemy Act (TWEA), and the Foreign Narcotics Kingpin Designation Act.  These statutes serve as the primary authority for most U.S. economic sanctions.  

Countries, Entities and Individuals Subject to Sanctions  

The Office of Foreign Assets Control (OFAC) administers the economic sanctions programs and maintains lists of countries subject to sanctions as well as companies and individuals owned or controlled by, or acting for or on behalf of, targeted countries.  In addition, OFAC maintains lists of individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific.

https://ofac.treasury.gov/office-of-foreign-assets-control-sanctions-programs-and-information#:~:text=OFAC%20Sanctions%20Lists,that%20are%20not%20country%2Dspecific.

Violations Giving Rise to Sanctions that May Result in Rewards:

Violations of the Emergency Powers Act (IEEPA):

1. Engaging in transactions or providing support to individuals, entities, or countries designated as a threat to U.S. national security or foreign policy interests under the IEEPA.

1. Violating or circumventing economic sanctions imposed under the IEEPA, including participating in prohibited trade activities or conducting financial transactions with sanctioned parties without proper authorization or licenses.

1. Evasion or avoidance of export controls or restrictions imposed under the IEEPA, such as unauthorized export or re-export of controlled goods, technology, or services. 

(The International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.))

Violations of the Trading with the Enemy Act (TWEA)

1. Engaging in transactions or providing support to countries or individuals designated as enemies of the United States under the TWEA.

1. Conducting business activities or financial transactions with entities or individuals located in countries subject to trade embargoes or economic sanctions under the TWEA without appropriate authorization or exemptions.

1. Failing to comply with reporting requirements, license conditions, or other restrictions related to trade activities with designated enemy countries under the TWEA. 

(Sections 5 and 12 of the Trading With the Enemy Act (50 U.S.C. 4305; 4312))

Violations of the Foreign Narcotics Kingpin Designation Act (Kingpin Act)

1. Conducting financial transactions or providing support to individuals or entities designated as foreign narcotics kingpins under the Kingpin Act.

1. Facilitating or participating in activities related to money laundering, drug trafficking, or other illicit activities conducted by designated foreign narcotics kingpins.

1. Failing to implement appropriate due diligence measures or report suspicious activities related to designated foreign narcotics kingpins under the Kingpin Act. (The Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901 et seq.))

Requirements to Participate in the Program

FinCEN has not yet issued regulations governing its program, but the same criteria applicable to AML whistleblowers apply to whistleblowers reporting violations of U.S. sanctions laws.