The U.S. Department of Justice (DOJ) has initiated a Corporate Whistleblower Awards Pilot Program to encourage reporting of corporate criminal activities. This three-year program targets financial institutions, including cryptocurrency businesses, to enhance the detection and prosecution of corporate crimes. Whistleblowers who provide non-public information leading to forfeitures over $1 million are eligible for awards.
DOJ Launches Whistleblower Awards Program to Tackle Crypto Crimes
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DOJ Launches Corporate Whistleblower Awards Pilot Program
The U.S. Department of Justice (DOJ) has launched the Corporate Whistleblower Awards Pilot Program to incentivize the reporting of corporate criminal activities, with a particular focus on financial institutions, including cryptocurrency businesses.
This three-year initiative, effective from Aug. 1, aims to fill gaps left by other whistleblower programs and enhance the DOJ’s ability to detect and prosecute corporate crime. Whistleblowers providing original, non-public information that leads to forfeitures exceeding $1 million are eligible for awards. The DOJ explained:
Under this pilot program, a whistleblower who provides the Criminal Division with original and truthful information about corporate misconduct that results in a successful forfeiture may be eligible for an award.
Eligible violations include money laundering, foreign corruption, domestic bribery, and healthcare fraud. The program is managed by the Criminal Division’s Money Laundering and Asset Recovery Section, emphasizing the importance of robust corporate compliance programs.
To qualify for an award, whistleblowers must submit truthful, voluntary, and complete information and cooperate fully with the DOJ’s investigations. Companies that voluntarily self-report within 120 days of an internal whistleblower report may benefit from a presumption of declination under the Corporate Enforcement and Voluntary Self-Disclosure Policy if they act before being contacted by the DOJ.
Awards are calculated based on net proceeds from forfeited assets, with a discretionary cap of up to 30% for the first $100 million. The DOJ stated that its Criminal Division will review whistleblower submissions and consult with the FBI on whether to open an investigation, noting:
If the resulting investigation and prosecution lead to a forfeiture greater than $1 million, the whistleblower may be eligible in DOJ’s discretion to receive a monetary award, provided the whistleblower meets certain eligibility criteria.
What do you think about the DOJ’s new whistleblower initiative? Let us know in the comments section below.
