Grassley, Fetterman Urge Implementation of Whistleblower Program to Fight Money Laundering

Grassley, Fetterman Urge Implementation of Whistleblower Program to Fight Money Laundering

WASHINGTON - Sens. Chuck Grassley (R-Iowa) and John Fetterman (D-Pa.) sent a letter to Department of Treasury Secretary Scott Bessent and Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki, urging them to implement the Grassley-authored Anti-Money Laundering Whistleblower Improvement Act. The law created FinCEN's whistleblower program to fight money laundering, terror-financing and sanctions evasion.

"An effective FinCEN whistleblower program is a critical tool for America's on-going fight against terrorists, drug-traffickers, and sanctioned state actors who are threats to our national security. Congress created [this] whistleblower program over five years ago. Yet, FinCEN has not finalized regulations that will make the program fully operational in the fight against America's enemies or even create a dedicated webpage for whistleblowers to learn about the program or submit tips," the senators wrote.

While FinCEN's whistleblower program has received hundreds of tips that have helped law enforcement, the program's rules have yet to be finalized. As a result, FinCEN has not paid out any awards to whistleblowers who have risked their livelihoods and even lives to expose lawbreaking. Grassley and Fetterman are urging swift implementation of final regulations and prompt payment of awards to make the whistleblower program effective.

"It is imperative that FinCEN finalize its rules and expeditiously pay out awards to incentivize future whistleblowers who put their livelihoods and often lives on the line to help law enforcement find and stop the flow of illicit funds to criminal cartels, terrorists, and sanctioned state actors," the senators continued.

While the program remains unimplemented, adversaries are finding new and creative ways to launder money. Chinese Money Laundering Organizations help criminal cartels launder the proceeds of opiate trafficking. Hezbollah has used art and diamonds to move $160 million to fund terrorism. Criminal cartels in South and Central America have raised and transferred money using looted antiquities. Russia, North Korea and Iran continue to find loopholes in the U.S. financial system.

Grassley and Fetterman last year introduced the Art Market Integrity Act, which requires art dealers and auction houses to comply with existing anti-money laundering and counter-terrorism financing regulations.

Read the full text of the letter HERE.

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