Top 5 Whistleblower Stories of 2024
In 2024, the whistleblowing landscape saw significant developments, with new programs, historic enforcement actions, and calls for expansion. Here are five major whistleblower stories from the year:
The U.S. Department of Justice (DOJ) introduced its first-ever whistleblower award program in August. While this move was widely praised, there was criticism regarding certain aspects of the program, such as discretionary awards and coverage for culpable whistleblowers. Despite this, the program has already received hundreds of tips, according to DOJ officials.
Throughout the year, the U.S. Securities and Exchange Commission (SEC) took action against companies for violating Rule 21F-17(a), which prohibits actions that hinder individuals from whistleblowing to the SEC. The largest penalty for such violations was levied on J.P. Morgan, fined $18 million in January. The U.S. Commodity Futures Trading Commission (CFTC) joined in June by sanctioning Trafigura for impeding whistleblowers, marking their first enforcement action in this area.
The Royal United Services Institute (RUSI) in the UK released a report in December advocating for a whistleblower award program. The report highlighted the success of U.S. programs and emphasized the role such a program could play in reducing financial crimes. This echoed similar sentiments expressed by Nick Ephgrave, Director of the Serious Fraud Office (SFO).
The Anti-Money Laundering and Sanctions Whistleblower Program gained momentum in 2024, generating numerous tips on money laundering and sanctions violations. By May, the program had received over 270 unique tips, many of which were relevant to top government priorities, such as sanctions evasion, drug trafficking, and cybercrimes.
On December 12, the National Highway Traffic Safety Administration (NHTSA) finalized rules for its Auto Safety Whistleblower Program, eight years after the deadline had passed. While this move was seen as a positive step, there were criticisms of certain elements of the rules that deviated from best practices of successful award programs.
Overall, 2024 was a year filled with important developments in the world of whistleblowing, from the establishment of new programs to calls for greater recognition and protection of those who come forward with vital information.
