United States: What Are The Different Whistleblower Programs?

Federal law creates several whistleblower programs that offer financial rewards for reporting fraud and other misconduct. The programs cover different subjects and have distinct procedures and requirements. But each generally entitles whistleblowers who provide the government with original information about fraud or other misconduct to receive a share of the government's recovery. That financial incentive seeks to encourage whistleblowers to provide information that might otherwise not come to the government's attention. To further encourage disclosure, most programs also protect whistleblowers from retaliation.

The most significant federal whistleblower programs are listed below.

• The False Claims Act permits suit against anyone who knowingly submits materially false claims for payment to the government. The False Claims Act was first enacted during the Civil War to address fraud by military contractors, but now applies to many different types of government claims, including claims under Medicare and Medicaid. Anyone found to have submitted materially false claims is liable for treble damages and civil penalties.
• The SEC Whistleblower Reward Program allows whistleblowers to report conduct prohibited by federal securities laws, including securities fraud and violations of the Foreign Corrupt Practices Act.
• The Anti-Money Laundering and Sanctions whistleblower program covers violations of the Bank Secrecy Act and U.S. monetary sanctions. The program permits whistleblowers to report, among other things, financial institutions' failure to detect money laundering or transactions with foreign entities and individuals designated as threats to national security.
• The Commodity Futures Trading Commission's whistleblower program allows whistleblowers to report violations of the Commodity Exchange Act, which regulates the trading of commodities such as precious metals, agricultural goods, or even potentially cryptocurrencies.
• The IRS whistleblower program allows whistleblowers to disclose tax evasion and other violations of federal tax law.
• The Motor Vehicle Safety Whistleblower Act allows whistleblowers to report safety-related problems in vehicles.

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