Compliance » Big Surge In Whistleblower Claims Predicted

Big Surge In Whistleblower Claims Predicted

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March 29, 2023

The Anti-Money Laundering Whistleblower Improvement Act, signed  into law in December 2022, could lead to a big increase in whistleblower claims. Awards can run into the tens of millions of dollars, depending on the size of the case. It allows whistleblowers to receive 10 to 30 percent of any monetary sanction imposed over $1 million for money laundering. Bianca M. Olivadoti and Susan M. Corcoran of the JacksonLewis firm, speculate that employers should prepare for a “considerable surge in whistleblower claims.” They advise strengthening reporting channels, examining investigation protocols and reviewing audit procedures to ensure a clear process for identifying red flags. They also caution against retaliating against whistleblowers, which is illegal and includes any action that affects the terms and conditions of employment – discipline, pay reduction, suspension, demotion, or termination. SEC policy is that employees may be able to disclose confidential information in the context of reporting and/or investigating unlawful conduct, even if the employer’s internal policies prohibit such disclosures.

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