Bill Overview
Title: A bill to provide for certain whistleblower incentives and protections.
Description: This bill revises the management of whistleblower incentive awards for individuals providing original information relating to illegal monetary transactions, money laundering, or other financial crimes. Specifically, the bill establishes a minimum award for whistleblowers of not less than 10 percent of the collected monetary sanctions. Further, the bill establishes the Financial Integrity Fund for the payment of such awards. The fund is comprised of collected monetary sanctions and investments of the fund.
Sponsors: Sen. Grassley, Chuck [R-IA]
Target Audience
Population: Individuals involved in or impacted by anti-money laundering and financial crime reporting
Estimated Size: 200000
- Whistleblowers involved in reporting money laundering and financial crimes will benefit directly from this bill.
- Anti-money laundering and financial crime professionals might also see changes in their workflows and possibly increased resources or support.
- The financial crimes being reported could affect multiple stakeholders, including banks, financial institutions, and potentially global markets.
- Increased protections and incentives might lead to more reports, indirectly affecting entities involved in financial transactions worldwide.
Reasoning
- The policy primarily benefits whistleblowers involved in anti-money laundering cases, offering them a clear financial incentive through the minimum 10% award. This can encourage individuals who might otherwise remain silent due to lack of potential reward or fear of retribution.
- Whistleblowers form a niche segment of the population, but their actions can have extensive effects on financial markets and institutions.
- We must be mindful of the budget limits, which may restrict the policy's impact if claim volumes exceed financial allocations.
- Professions such as compliance officers and financial auditors, while not direct beneficiaries, will likely experience workflow changes and heightened importance of their roles.
- The broader public, while indirectly affected by improved financial transparency and accountability, may not perceive direct benefits immediately.
- Given the $50M budget in year 1, and $620.18M over 10 years, the impact will depend on the volume of whistleblowing cases and the size of monetary sanctions collected.
Simulated Interviews
Financial Auditor (New York City, NY)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I think the act could encourage more transparency within organizations, which is positive.
- It might make my job busier but more rewarding if I can make a real impact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Compliance Officer (San Francisco, CA)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- This policy adds more responsibility on compliance teams, which is both a challenge and an opportunity.
- I hope it leads to better practices across the industry.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Whistleblower (Atlanta, GA)
Age: 30 | Gender: other
Wellbeing Before Policy: 3
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- The financial incentive is encouraging but I worry if it's enough to outweigh the risks involved.
- More protections would be appreciated alongside the financial rewards.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 3 |
| Year 2 | 5 | 3 |
| Year 3 | 6 | 3 |
| Year 5 | 7 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 3 |
Retired Banker (Chicago, IL)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- It's encouraging to see steps being taken to combat financial crimes with meaningful incentives.
- I think it will benefit the financial system in the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Data Analyst (Austin, TX)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- Data analysis in whistleblower cases might become more demanding but also more impactful.
- It feels good to know we might be part of a bigger change in reducing financial crimes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Accountant (Miami, FL)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I'm optimistic about the act encouraging accountability in larger corporations.
- I doubt it would change much for smaller businesses though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Legal Advisor (Los Angeles, CA)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 9/20
Statement of Opinion:
- This adds a meaningful tool in our legal toolkit for encouraging clients to maintain compliance.
- I think it might lead to more clients seeking regulation-based advice.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Software Developer (Seattle, WA)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 13/20
Statement of Opinion:
- The act seems good for those reporting, but it won't affect my work directly.
- Maybe there will be an increased demand for secure systems to accompany the policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Financial Crime Investigator (Denver, CO)
Age: 28 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- The incentive could lead to increased reporting, which will keep us busier.
- I believe it could help us tackle financial crimes more effectively if implemented well.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Economics Professor (Boston, MA)
Age: 45 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- Such policies generally bolster economic integrity if their execution is transparent.
- The fund's success will depend on how consistently it can reward whistleblowers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $50000000 (Low: $25000000, High: $75000000)
Year 2: $52500000 (Low: $26250000, High: $78750000)
Year 3: $55125000 (Low: $27562500, High: $82687500)
Year 5: $60000000 (Low: $30000000, High: $90000000)
Year 10: $75000000 (Low: $37500000, High: $112500000)
Year 100: $100000000 (Low: $50000000, High: $150000000)
Key Considerations
- The variability in monetary sanctions determines the fund's capacity to award whistleblowers annually.
- Volume of financial crimes reported by whistleblowers may vary significantly year over year.
- The capability and performance of the Financial Integrity Fund in managing awards and collected sanctions will influence the operational costs.