Kleptocracy Asset Recovery Rewards Program

Kleptocracy Asset Recovery Rewards Program

About the Program

Congress has established the Kleptocracy Asset Recovery Rewards Program, as part of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, Pub. L. No. 116-283, to pay rewards to qualified individuals who provide information leading to the restraint or seizure, forfeiture, or repatriation of “stolen assets,” as defined by the law, linked to foreign government corruption.

Through its Kleptocracy Asset Recovery Rewards Program, the Secretary of the Treasury has statutory authority to offer rewards up to a maximum of $5,000,000 (or more with additional authorization) for information leading to the seizure, restraint, forfeiture, or repatriation of assets linked to corruption involving the government of the Russian Federation that are 1) in an account at a U.S. financial institution (including a U.S. branch of a foreign financial institution); 2) that come within the United States, or 3) that come within the possession or control of any U.S. person.  

[The discretionary Kleptocracy Asset Recovery Rewards program compliments the previously established Anti-Money Laundering whistleblower program, which provides for mandatory awards to whistleblowers who provide information about violations of the Bank Secrecy Act (BSA).]

Key Features of Kleptocracy Program

• “Stolen assets” include financial assets within the jurisdiction of the United States constituting, derived from, or traceable to, any proceeds obtained directly or indirectly from foreign government corruption. The term “financial assets” means funds, investments, or ownership interests, that, after January 1, 2021, come within the United States or that come within the possession or control of any U.S. person.

• Whistleblowers involved in the underlying misconduct are subject to a mandatory reduction of any reward, and they may be subject to a denial of an award, at the Secretary of the Treasury’s discretion.  If a whistleblower is convicted of criminal conduct arising from their role in the underlying corruption, they shall be denied a reward.

• Rewards are discretionary.  The maximum amount of any reward is $5 million, unless the Secretary of the Treasury determines the case merits a reward greater than $5 million, personally authorizes a greater amount, and notifies Congress of the determination.

• Reward amounts will be based on various factors, including whether the information was previously known to investigating agencies, the risk assumed by the informant, and the significance of the information in leading to the restraint or seizure, forfeiture, or repatriation of the assets identified.

• The Department of the Treasury will keep the information received, as well as the identity of the person who supplied it and any monies paid out by this program, strictly confidential.  However, there may be circumstances under which some information relating to the source of the information may have to be disclosed or it may be possible to identify sources from the information provided. 

• To be eligible for consideration for a reward, nominees must submit information under penalty of perjury.  Those who knowingly provide false information may be referred to U.S. law enforcement for further investigation.

Confidential Consultations

If you would like a confidential consultation to learn more about the program before contacting federal authorities, contact counsel@lopds.com