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Bankers Ask U.S. to Revise Planned Whistleblower Program
printU.S. and Canadian banks are among the over 260 companies asking the Securities and Exchange Commission to reconsider a new federal whistleblower program they say will undermine internal reporting controls. Royal Bank of Canada, Heritage Bancorp., TD Bank Financial Group and Carter Federal Savings Bank, and the Pennsylvania Bankers Association have signed a letter by the Washington, D.C.-based Association of Corporate Counsel that calls into question the program, which would reward whistleblowers up to 30 percent of monetary penalties over $1 million that result from their disclosures. The program is restricted to the reporting of crimes impacting stock prices, and...
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Former UBS AG employee Stephanie Gibaud in 2008 was faced with the choice of whether to comply with her employer's request that she destroy records potentially indicating that the bank had courted tax-evading clients. When she refused, the bank psychologically bullied her until she departed in 2012.
I've always found it offensive when tabloids use terms like "rat" or "squealer" to describe the actions of those who report or testify about criminal behavior. It's no less offensive when one of the terms is used in defense of attorney-client privilege.
The Internal Revenue Service disclosed final rules set for publication next week that will clarify how and when informants can collect rewards for identifying tax cheats, but not money launderers.
Dozens of would-be informants from banks have contacted attorneys following the disclosure Tuesday that a former UBS AG banker received $104 million for reporting his institution's role in a tax evasion scheme.
A U.S. lawmaker is questioning an IRS decision not to reward whistleblowers who disclose potential violations of Bank Secrecy Act reporting requirements tied to accounts held at foreign financial institutions.
Allegations that the nation's securities regulator has destroyed records detailing evidence in 18,000 investigations could deter would-be whistleblowers from turning to the agency, say lawmakers and compliance professionals.
The effect of a planned whistleblower program expected to have an impact on anti-money laundering compliance departments will likely be mitigated by low funding and other issues, say consultants.
The release of hundreds of U.S. State Department cables as part of a massive leak of sensitive diplomatic communiqués is likely to prompt bank compliance departments to tweak risk rankings.
A provision in the Senate's proposed financial overhaul bill could incentivize more anti-money laundering compliance officers to blow the whistle on any illegal activities of their employers in exchange for large payouts.
For a whistleblower program to be effective, employees have to believe that any action they take will produce results and that they will be protected from retaliation, experts say.