Sec. 501. Modernization and upgrading whistleblower protections
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Section 5328 of title 31, United States Code, is amended— by striking subsections
(a)and
(b)and inserting the following: No financial institution or nonfinancial trade or business may discharge or otherwise discriminate against any applicant for employment, employee, or former employee with respect to compensation, terms, conditions, or privileges of employment because the applicant, employee, or former employee (or any person acting pursuant to the request of the employee)— provided, was about to provide, assisted in providing, or was perceived as providing information to the Secretary of the Treasury, the Attorney General, any Federal supervisory agency, or the Congress regarding a possible violation of any provision of this subchapter or section 1956, 1957, or 1960 of title 18, or any regulation under any such provision, by the financial institution or nonfinancial trade or business or any director, officer, or employee of the financial institution or nonfinancial trade or business; or objected to, or refused to participate in, any activity, policy, practice, or assigned task that the applicant, employee, former employee (or other such person) reasonably believed to be in violation of any provision of this subchapter or any other Act enforced by the Secretary of the Treasury, the Attorney General, a Federal supervisory agency, or any order, rule, regulation, standard, or ban under this subchapter of any of such Acts. Within the 2-year period beginning on the date an applicant, employee, or former employee who believes that such applicant, employee, or former employee has been discharged or discriminated against in violation of subsection (a), such applicant, employee, or former employee may— file a civil action in the appropriate United States district court, in accordance with the burdens of proof and remedies set forth in section 1057 of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5567 ); or file a complaint with the Secretary of Labor with regards to a violation of subsection
(a)to seek relief in accordance with the procedures, burdens of proof, and remedies set forth in section 1057 of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5567 ) for a violation of subsection
(a)of such section, except that for purposes of such a complaint, the time period specified under subsection (c)(1)(A) of such section shall be deemed to be a 2-year period. ; in subsection (c), by inserting after district court the following: or the Secretary, as applicable, ; and by amending subsection
(e)to read as follows: The Secretary of the Treasury shall issue regulations requiring each financial institution and nonfinancial trade or business to provide education and training to its employees on the rights and remedies provided under this section, including through individual notice to its employees, posting information on its website home page, and providing mandatory training for its employees. Such education and training may be incorporated into existing education or training on the requirements of this subtitle provided by such institution or trade or business. The Secretary of the Treasury shall issue regulations requiring each financial institution and nonfinancial trade or business— to have a procedure in place for an employee or former employee to report directly to the chief executive officer, a representative appointed by and reporting directly to the chief executive officer who is specifically designated to receive such a report, or through a hotline consistent with professional best practices to the audit committee of the board of directors, if such employee or former employee believes that violations of this subchapter have occurred or are occurring at such institution, trade, or business; and to not discriminate against an employee or former employee for such reports. . Section 5323(d) of title 31, United States Code, is amended to read as follows: For the purposes of paying an award under this section, there are authorized to be appropriated such sums as may be necessary, and the Secretary may also use funds from the Department of the Treasury Forfeiture Fund and the Department of Justice Assets Forfeiture Fund. . Chapter 53 of title 31, United States Code, is amended— by inserting after section 5323 the following: For purposes of this section: The term Bank Secrecy Act means this subchapter, section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ), and section 123 of Public Law 91–508 . The term covered judicial or administrative action means any judicial or administrative action brought by FinCEN under the Bank Secrecy Act that results in monetary sanctions exceeding $1,000,000. The term FinCEN means the Financial Crimes Enforcement Network. The term monetary sanctions , when used with respect to any judicial or administrative action, means— any monies, including penalties, disgorgement, and interest, ordered to be paid; and any monies deposited into a disgorgement fund as a result of such action or any settlement of such action. The term original information means information that— is derived from the independent knowledge or analysis of a whistleblower; is not known to FinCEN from any other source, unless the whistleblower is the original source of the information; and is not exclusively derived from an allegation made in a judicial or administrative hearing, in a governmental report, hearing, audit, or investigation, or from the news media, unless the whistleblower is a source of the information. The term related action , when used with respect to any judicial or administrative action brought by FinCEN, means any judicial or administrative action that is based upon original information provided by a whistleblower that led to the successful enforcement of the action. The term whistleblower means any individual who provides, or 2 or more individuals acting jointly who provide, information relating to a violation of laws enforced by FinCEN, in a manner established, by rule or regulation, by FinCEN. In any covered judicial or administrative action, or related action, FinCEN, under regulations it prescribes and subject to subsection (c), shall pay an award or awards to 1 or more whistleblowers who voluntarily provided original information to FinCEN that led to the successful enforcement of the covered judicial or administrative action, or related action, in an aggregate amount equal to— not less than 10 percent, in total, of what has been collected of the monetary sanctions imposed in the action or related actions; and not more than 30 percent, in total, of what has been collected of the monetary sanctions imposed in the action or related actions. For the purposes of paying any award under paragraph
(1)there are authorized to be appropriated such sums as may be necessary, and the Secretary may also use funds from the Department of the Treasury Forfeiture Fund and the Department of Justice Assets Forfeiture Fund. The determination of the amount of an award made under subsection
(b)shall be in the discretion of FinCEN. In responding to a disclosure and determining the amount of an award made, FinCEN shall meet with the whistleblower to discuss evidence disclosed and rebuttals to the disclosure, and— shall take into consideration— the significance of the information provided by the whistleblower to the success of the covered judicial or administrative action; the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a covered judicial or administrative action; the mission of FinCEN in deterring violations of the law by making awards to whistleblowers who provide information that lead to the successful enforcement of such laws; and such additional relevant factors as FinCEN may establish by rule or regulation; and shall not take into consideration the balance of any fund described under section 5323(d). No award under subsection
(b)shall be made— to any whistleblower who is, or was at the time the whistleblower acquired the original information submitted to FinCEN, a member, officer, or employee of— an appropriate regulatory agency; the Department of Justice; a self-regulatory organization; or a law enforcement organization; to any whistleblower who is convicted of a criminal violation related to the judicial or administrative action for which the whistleblower otherwise could receive an award under this section; to any whistleblower who gains the information through the performance of an audit of financial statements required under the Bank Secrecy Act and for whom such submission would be contrary to its requirements; or to any whistleblower who fails to submit information to FinCEN in such form as FinCEN may, by rule, require. For any decision granting or denying an award, FinCEN shall provide to the whistleblower a statement of reasons that includes findings of fact and conclusions of law for all material issues. Any whistleblower who makes a claim for an award under subsection
(b)may be represented by counsel. Any whistleblower who anonymously makes a claim for an award under subsection
(b)shall be represented by counsel if the whistleblower anonymously submits the information upon which the claim is based. Prior to the payment of an award, a whistleblower shall disclose their identity and provide such other information as FinCEN may require, directly or through counsel for the whistleblower. Any determination made under this section, including whether, to whom, or in what amount to make awards, shall be in the discretion of FinCEN. Any such determination, except the determination of the amount of an award if the award was made in accordance with subsection (b), may be appealed to the appropriate court of appeals of the United States not more than 30 days after the determination is issued by FinCEN. The court shall review the determination made by FinCEN in accordance with section 706 of title 5. ; and in the table of contents for such chapter, by inserting after the item relating to section 5323 the following new item: 5323A. Whistleblower incentives. .
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- Pub. L. 91-508
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Sec. 501
Modernization and upgrading whistleblower protections
Pub. L.Pub. L. 91-508
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