On August 1st, 2024, the Department of Justice’s Criminal Division for Money Laundering and Asset Recovery Section (DOJ) introduced the Corporate Whistleblower Awards Pilot Program. This three-year initiative is designed to encourage whistleblowers to report corporate criminal activities by offering financial rewards for valuable information about corporate criminal wrongdoing, such as money laundering, fraud and corruption.
To be eligible, whistleblowers must be natural persons, not have participated in the crime they are reporting, and provide original and truthful information directly to the DOJ. Additionally, they cannot be government officials or DOJ members at the time they obtained the information.
Those who provide information about misconduct that results in criminal or civil forfeiture exceeding USD $1 million may receive up to 30% of the first USD $100 million seized and up to 5% of the net proceeds seized between USD $100 million and $500 million.
This program not only incentivizes individuals to report corporate crime but also aims to strengthen compliance programs that detect and prevent criminal conduct.
The success of similar programs highlights that financial incentives can be a powerful tool for government authorities and companies in LATAM seeking to enhance their compliance programs and bolster their efforts to prevent and address corporate misconduct.
