The Financial Crimes Enforcement Network (“FinCEN”) recently issued a Proposed Rule to implement the Anti-Money Laundering Whistleblower Improvement Act (“AML WIA”). Whistleblower advocates argue that the proposed rule diverges from Congressional intent and fails to sufficiently protect or incentivize whistleblowers, undermining the law’s purpose.

On April 30th, the National Whistleblower Center submitted 19 comments to FinCEN, identifying how the Proposed Rules weaken the AML whistleblower program’s impact. This article examines how the provision of the proposed rule concerning the submission of Form TCR (Tip, Complaint, or Referral), the official form to submit original information about potential violations, risks disqualifying otherwise meritorious whistleblowers on purely technical grounds.

If left unchanged, the NWC argues, FinCEN’s proposed rules could prevent qualified whistleblowers from receiving awards even when their disclosures directly lead to successful enforcement actions. The NWC has called on FinCEN to revise both provisions before the comment period closes on June 1, 2026. To learn more about NWC’s campaign, click here.

What Is the Form TCR and Why Does It Matter?

The Tip, Complaint, or Referral form, known as the “Form TCR” or “TCR”, is the official form through which whistleblowers will submit information to FinCEN. The Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) whistleblower programs both use Form TCR, and the Internal Revenue Service (“IRS”) uses Form 211, which serves the same function. The TCR is the administrative gateway through which a whistleblower formally submits information to the government.

Under FinCEN’s proposed rule, for a whistleblower to qualify for an award, their information must be submitted using the Form TCR. Whistleblowers who first report to the Department of Justice, another component of the Treasury, or their employer must also provide that information to FinCEN "within a reasonable time" to remain eligible for an award.

The NWC states that the problem with this proposal is that the AML WIA itself imposes no timing requirement for when a whistleblower must file a Form TCR. The NWC says this requirement is entirely new from FinCEN and not within the AML WIA. As experience with nearly identical rules at the SEC and the IRS has shown, this requirement could inevitably cause unnecessary delays and confusion, punishing qualified whistleblowers for procedural missteps unrelated to the substance of their disclosures.

The TCR Timing Requirement: A Procedural Trap for Qualified Whistleblowers

The risks posed by a strict TCR timing requirement are not hypothetical, the NWC argues. It points out that both the SEC and the IRS have confronted this exact problem, and both have been forced to walk back rigid filing requirements after years of litigation demonstrated that they were unworkable.

The SEC and IRS Precedent

The SEC's initial TCR rule, adopted in 2011, was strikingly similar to FinCEN's current proposal: it simply required that a whistleblower file an initial award claim using a Form TCR, without specifying a deadline. That rule generated years of confusion and prolonged litigation, including disputes over whether a whistleblower's first contact with the SEC had to occur through a Form TCR even when the whistleblower had directly contacted another part of the agency.

To address these problems, the SEC amended its TCR regulation in 2020, acknowledging that many whistleblowers did not understand the requirement. The amendment added a new subsection requiring the Form TCR to be filed within 30 days of first contact with the SEC, or alternatively, within 30 days of obtaining “actual” knowledge of the filing requirement.

Even that amended rule proved unworkable. By case law, the SEC has adopted a litigation-based approach under which an “otherwise qualified” whistleblower remains eligible for an award regardless of when the Form TCR was filed.

The same issue has been litigated before the Tax Court in the context of the IRS Form 211, a form that serves the identical function as the Form TCR for the IRS whistleblower program.

What FinCEN Should Do

The NWC recommends that FinCEN incorporate the SEC’s 30-day rule into the final regulation, with two key adjustments. First, the compliance window should be extended from 30 to 90 days. Many whistleblowers in AML cases will be foreign nationals represented by non-U.S. counsel who are unfamiliar with FinCEN's specific procedural requirements. A 30-day window is inadequate for this population. Second, the rule should expressly state that a late-filed TCR is not grounds for denying an award to an otherwise qualified whistleblower, consistent with both SEC case law and Tax Court precedent. Timely filing should be encouraged, and whistleblowers should be informed of this requirement, but it should never function as a disqualifying mechanism.

Conclusion

FinCEN has a historic opportunity to establish a whistleblower program that exceeds the effectiveness of those operated by the SEC and IRS. But this opportunity will be squandered, say whistleblower advocates, if the final rule disqualifies meritorious whistleblowers on procedural grounds that Congress never authorized.

The NWC says the path forward is clear. On the Form TCR, FinCEN should adopt the SEC's “otherwise qualified whistleblower” standard, extend the compliance window to 90 days, and codify that a late-filed TCR is never grounds for disqualification.

The AML WIA was enacted to strengthen the reporting of financial crimes. The proposed rule, as currently drafted, warns the NWC, risks doing the opposite. The NWC, as highlighted in the rulemaking comments it has submitted, urges FinCEN to revise these provisions to ensure that the program works as Congress intended.

The NWC launched a grassroots campaign to encourage whistleblowers, supporters, and anti-corruption advocates to submit their own comments on FinCEN’s proposed rules.