DCUC Comments on FinCEN Proposed Whistleblower Program

WASHINGTON, DC – The Defense Credit Union Council (DCUC) submitted official comments regarding the Financial Crimes Enforcement Network’s (FinCEN) proposed rule establishing a whistleblower program designed to encourage reporting of potential violations of the Bank Secrecy Act (BSA) and other anti-money laundering and national security laws. ​

In its letter, DCUC expressed support for FinCEN’s efforts to strengthen the detection and prevention of illicit financial activity while offering recommendations to ensure the program complements existing compliance frameworks at credit unions: 
 
"Credit unions serving military communities routinely encounter fraud, sanctions, and national security risks affecting servicemembers, veterans, and their families and understand firsthand the importance of safeguarding the financial system against criminal activities. DCUC, therefore, strongly supports efforts to identify and deter illicit financial activity that threatens the integrity of the financial system and broader national security. While we support the objectives of this proposed rule and the vital role whistleblowers play in identifying significant violations, we offer recommendations to ensure the final rule strengthens compliance efforts without undermining effective internal controls.” 
 
DCUC's recommendations focused on several key areas: 

• Encouraging Internal Reporting: DCUC supports provisions that preserve incentives for employees to utilize internal compliance channels, including FinCEN’s proposed 120-day waiting period before external reporting. 

• Protecting Confidential Supervisory Information: DCUC requested clarification that whistleblower submissions do not authorize the disclosure of protected examination or supervisory materials. 

• Maintaining High Standards for “Original Information”: DCUC urged FinCEN to establish rigorous standards and safeguards to discourage duplicative, unsupported, or bad-faith claims. 

• Recognizing Good-Faith Compliance Efforts: DCUC encouraged FinCEN to consider institutions’ prompt corrective actions, cooperation with regulators, and remediation efforts when evaluating enforcement outcomes, while recognizing the unique operational realities of small and mid-sized credit unions. 

 
DCUC appreciates FinCEN’s commitment to combating illicit finance and reaffirmed its support for a final rule that strengthens enforcement while preserving effective compliance programs and recognizing the important role credit unions play in protecting the financial system. ​