In a speech earlier this month, US Deputy Attorney General Lisa Monaco announced that the Department of Justice (DOJ) would introduce a pilot program offering financial rewards to whistleblowers who report corporate crimes.
Aiming to enhance cooperation with tipsters, the initiative will utilize funds from defendants' forfeited assets. Monaco cited the success of similar programs, such as the one run by the Securities and Exchange Commission (SEC), which awarded nearly $600 million to whistleblowers in 2023. "Going back to the days of 'Wanted' posters across the Old West, law enforcement has long offered rewards to coax tipsters out of the woodwork," Monaco said. "Now's the time to expand our use of this tool in corporate misconduct cases and apply it to reward whistleblowing."
While such programs exist in other agencies like the Commodity Futures Trading Commission (CFTC) and the Internal Revenue Service, the Justice Department aims to tailor its program to address gaps in existing frameworks, particularly concerning business corruption and private companies not overseen by the SEC.
The DOJ has also made clear that it intends to reward companies for self-reporting misconduct. These programs put a premium on firms' ability to establish a speak-up culture, where employees feel safe to raise issues internally rather than reporting them to regulators.
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