The U.S. Department of Treasury’s Financial Crimes Enforcement Network has created a brand new whistleblower program that will pay more than $5 million to any whistleblower with information that helps them seize assets of Russian elites seeking to evade U.S. sanctions against Russian oligarchs. The program is called the Kleptocracy Asset Recovery Rewards Programhttps://www.fincen.gov/sites/default/files/2022-03/FinCEN%20Alert%20Russian%20Elites%20High%20Value%20Assets_508%20FINAL.pdf aimed at seizing stolen assets by elites and their associates and the proceeds of their corruption. The initial rewards are $5 million but the Treasury Secretary can authorize greater amounts if the case merits it. As defined by law, “stolen assets’ are financial assets within the U.S. constituting, derived from, or traceable to, any proceeds obtained directly or indirectly from foreign government corruption. The administration levied several sanctions against Russian banks, entities, and individuals since its invasion of Ukraine. High-value items include precious metals, money including bank accounts, yachts, cars jewelry, cryptocurrencies such as Bitcoin, apartments, and other items of value.
Of significant note, Banks and their employees should examine if the transactions appear to be far above or below fair market value, and alarm bells should also go off if a Russian individual or entity requests a wire transfer from a non-U.S. bank to pay for an all-cash purchase of the assets, FinCEN noted.
JEFFREY NEWMAN REPRESENTS WHISTLEBLOWERS INCLUDING IN CASES OF SECURITIES AND EXCHANGE COMMISSION WHISTLEBLOWER CASES, MONEY LAUNDERING CASES UNDER THE TREASURY PROGRAM AS WELL AS IN FALSE CLAIMS ACT MATTERS REGARDING FRAUDULENT BILLING. HE CAN BE REACHED AT JEFFREY.NEWMAN1@GMAIL.COM OR AT 978-880-4758. #helpUkraine