Substantial AML Reforms Enable Regulators To "Follow The Money"

On January 1, 2021, Congress enacted the National Defense Authorization Act for Fiscal Year 2021 (the "NDAA"), after overriding a presidential veto. Within the NDAA is the Anti-Money Laundering Act of 2020 (the "AMLA"), which introduces substantial reforms to U.S. anti-money laundering ("AML") and counter-terrorism financing ("CFT") laws. The AMLA demonstrates Congressional intent to combat money laundering and terrorist financing through expanding the Financial Crimes Enforcement Network's ("FinCEN") regulatory power. Major legislative reforms include:

• Modifying the AML whistleblower program: Eligible whistleblowers may now receive up to 30 percent of total monetary sanctions imposed over $1 million. Notably, the whistleblower program provides that company compliance personnel and auditors may be eligible for an award if they become aware of and report violations during the course of performing their job duties;