DOJ Launches Corporate Whistleblower Awards Pilot Program

The U.S. Department of Justice (DOJ) has launched the Corporate Whistleblower Awards Pilot Program to incentivize the reporting of corporate criminal activities

The U.S. Department of Justice (DOJ) has announced a new Corporate Whistleblower Awards Pilot Program to encourage reporting of corporate criminal activities. This three-year program particularly targets financial institutions, including cryptocurrency businesses, to enhance the detection and prosecution of corporate crimes.

Announced on Friday, the program is aimed at encouraging whistleblowers to report corporate criminal activities, especially those involving financial institutions. The initiative will span three years, beginning on Aug. 1.

“This pilot program is designed to fill gaps left by other whistleblower programs and bolster DOJ’s ability to detect and prosecute corporate crime,” the DOJ stated in the announcement.

Whistleblowers who submit original, non-public information about corporate misconduct that leads to successful forfeitures of over $1 million will be eligible for awards under the program.

“If the resulting investigation and prosecution lead to a forfeiture greater than $1 million, the whistleblower may be eligible in DOJ’s discretion to receive a monetary award, provided the whistleblower meets certain eligibility criteria,” the DOJ explained.

The announcement further states that eligible violations include money laundering, foreign corruption, domestic bribery, and health care fraud. The program will be managed by the Criminal Division’s Money Laundering and Asset Recovery Section.

“The importance of robust corporate compliance programs is also highlighted by this initiative,” the DOJ noted.

To qualify for an award, whistleblowers must voluntarily submit complete, truthful, and original information and fully cooperate with the DOJ’s investigations, the announcement adds.

Companies that self-report voluntarily within 120 days of an internal whistleblower report may benefit from a presumption of declination under the Corporate Enforcement and Voluntary Self-Disclosure Policy if they do so before being contacted by the DOJ.

The awards will be calculated based on net proceeds from forfeited assets, up to a discretionary cap of 30% for the first $100 million. The DOJ's Criminal Division will review whistleblower submissions and consult with the FBI on whether to open an investigation.