New U.S. program will reward whistleblowers for exposing foreign corruption
The U.S. Congress in March 2022 launched a new program to reward whistleblowers for exposing foreign government corruption.
The program may pay rewards up to a maximum $5 million to qualified whistleblowers who provide information leading to the restraint or seizure, forfeiture, or repatriation of “stolen assets” in an account at a U.S. financial institution (including a U.S. branch of a foreign financial institution) that come within the United States or that come within the possession or control of any U.S. person.
Known as the Kleptocracy Asset Recovery Rewards Program, it is being managed by the Department of Treasury in close coordination with the Department of Justice and other U.S. federal law enforcement agencies.
It has three initial targets:
*Information about assets linked to corruption involving the government of the Russian Federation;
*Information about bribes paid by Odebrecht S.A. and Braskem S.A. Odebrecht S.A., a global construction conglomerate based in Brazil, has admitted that it paid $788 million in bribes to or for the benefit of government officials in 12 countries. Braskem S.A., a Brazilian petrochemical company, also admitted to paying approximately $250 million to Odebrecht to use to pay bribes in Brazil, according to the Treasury Department.
*Information about assets linked to corruption involving the Sovereign Wealth Fund of Malaysia, known as 1MDB, or related embezzlement.
Earlier in March, U.S. Attorney General Merrick B. Garland announced the launch of a task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s invasion of Ukraine.
“The Justice Department will use all of its authorities to seize the assets of individuals and entities who violate these sanctions,” Garland said. “We will leave no stone unturned in our efforts to investigate, arrest, and prosecute those whose criminal acts enable the Russian government to continue this unjust war. Let me be clear: if you violate our laws, we will hold you accountable.”
Deputy Attorney General Lisa O. Monaco went on to state that, “To those bolstering the Russian regime through corruption and sanctions evasion: we will deprive you of safe haven and hold you accountable. Oligarchs be warned: we will use every tool to freeze and seize your criminal proceeds.”
Because real estate, luxury goods, and other high-value assets can be used as a store of value, a medium of exchange, or an investment, sanctioned Russian elites and their proxies may use such assets to evade expansive U.S. and other sanctions and restrictions imposed in response to the Russian invasion of Ukraine, according to a March 2022 alert from The Financial Crimes Enforcement Network.
Scott Williams, CEO of Ethic Alliance, encouraged whistleblowers who know about the evasion of Russia sanctions to contact Ethic Alliance.
“This is a great way to help the people of the Ukraine. If a company you work for, or someone you know is actively violating US sanctions, whistleblowers can report it with us, receive legal protection and anonymity, and receive the rewards they are entitled to under this and other government whistleblower statutes. Additionally, there are other legal avenues potentially available to whistleblowers who know of companies either offering bribes to officials or violating US sanctions, including the Foreign Corrupt Practices Act and potentially the SEC as well,” said Williams.
Ethic Alliance is a for-profit corporation and law firm whose purpose is to empower, educate and protect whistleblowers, ensuring they receive the protection they need and the rewards they are entitled to under US law (the US government will typically reward whistleblowers 10%-30% of the amount recovered or sanctioned under various whistleblower laws), generating profits for investors while reducing corruption, fraud, theft, lying and cheating in our society.
Ethic Alliance protects whistleblowers through a secure, encrypted reporting and messaging platform, attaching the strong legal protection of attorney-client privilege from the moment a report is filed with us, and access to a network of specialty attorneys that have made careers protecting and supporting whistleblowers, and working with the US government to win whistleblower lawsuits.
Contact Ethic Alliance at info@ethicalliance.com
Related links: https://home.treasury.gov/about/offices/terrorism-and-financial-intelligence/terrorist-financing-and-financial-crimes/kleptocracy-asset-recovery-rewards-program ; https://www.justice.gov/opa/pr/attorney-general-merrick-b-garland-announces-launch-task-force-kleptocapture
Photo by Yehor Milohrodskyi on Unsplash