CFPB Whistleblower Incentives and Protection Act
This bill requires the Consumer Financial Protection Bureau to provide awards to whistleblowers who report information resulting in monetary sanctions.
Whistleblowers claiming an award are permitted to have legal representation. Anonymous whistleblowers claiming an award are required to have legal representation and must disclose their identity to the bureau. The bureau may not disclose an anonymous whistleblower's identity except in limited circumstances, including to other government agencies in the course of an investigation.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2490 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 2490
To amend the Consumer Financial Protection Act of 2010 to provide for
whistleblower incentives and protection, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 6, 2023
Mr. Emmer (for himself, Mr. Donalds, Mr. Luetkemeyer, Mr. Meuser, and
Mr. Posey) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Consumer Financial Protection Act of 2010 to provide for
whistleblower incentives and protection, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``CFPB Whistleblower Incentives and
Protection Act''.
SEC. 2. BUREAU WHISTLEBLOWER INCENTIVES AND PROTECTION.
(a) In General.--The Consumer Financial Protection Act of 2010 (12
U.S.C. 5481 et seq.) is amended by inserting after section 1017 the
following:
``SEC. 1017A. WHISTLEBLOWER INCENTIVES AND PROTECTION.
``(a) Definitions.--In this section:
``(1) Administrative proceeding or court action.--The term
`administrative proceeding or court action' means any judicial
or administrative action brought by the Bureau that results in
monetary sanctions exceeding $1,000,000.
``(2) Fund.--The term `Fund' means the `Consumer Financial
Civil Penalty Fund' established under section 1017(d)(1).
``(3) Monetary sanctions.--The term `monetary sanctions',
when used with respect to any administrative proceeding or
court action means any monies, including penalties,
disgorgement, restitution, or interest, ordered to be paid or
other amounts of relief obtained under section 1055(a)(2).
``(4) Original information.--The term `original
information' means information that--
``(A) is derived from the independent knowledge or
analysis of a whistleblower;
``(B) is not known to the Bureau from any other
source, unless the whistleblower is the original source
of the information;
``(C) is not exclusively derived from an allegation
made in a judicial or administrative hearing, in a
governmental report, hearing, or from the news media,
unless the whistleblower is a source of the
information; and
``(D) is not exclusively derived from an allegation
made in an audit, examination, or investigation.
``(5) Successful enforcement.--The term `successful
enforcement', when used with respect to any administrative
proceeding or court action, includes any settlement of such
action.
``(6) Whistleblower.--The term `whistleblower' means any
individual, or 2 or more individuals acting jointly, who
provides original information relating to a violation of
Federal consumer financial law, consistent with any rule issued
by the Bureau under this section.
``(b) Awards.--
``(1) In general.--In any administrative proceeding or
court action the Bureau, subject to rules prescribed by the
Bureau and subject to subsection (c), shall pay an award or
awards to 1 or more whistleblowers who voluntarily provided
original information that led to the successful enforcement of
the administrative proceeding or court action in an aggregate
amount equal to--
``(A) not less than the greater of--
``(i) 10 percent, in total, of monetary
sanctions imposed and collected in the
administrative proceeding or court action; or
``(ii) $50,000; and
``(B) not more than 30 percent, in total, of such
monetary sanctions.
``(2) Payment of awards.--Any amount paid under paragraph
(1) shall be paid from the Fund.
``(3) Award maximum.--Notwithstanding any other provision
in this section, the maximum award to any single whistleblower
is limited to $5,000,000.
``(c) Determination of Amount of Award; Denial of Award.--
``(1) Determination of amount of award.--
``(A) Discretion.--The determination of the
percentage amount of an award made under subsection (b)
shall be in the discretion of the Bureau.
``(B) Criteria.--In determining the percentage
amount of an award made under subsection (b), the
Bureau shall take into consideration--
``(i) the significance of the information
provided by the whistleblower to the successful
enforcement of the administrative proceeding or
court action;
``(ii) the degree of assistance provided by
the whistleblower and any legal representative
of the whistleblower in an administrative
proceeding or court action;
``(iii) the programmatic interest of the
Bureau in deterring violations of Federal
consumer financial law (including applicable
rules) by making awards to whistleblowers who
provide information that leads to the
successful enforcement of such laws; and
``(iv) such additional relevant factors as
the Bureau may establish by rule.
``(2) Denial of award.--No award under subsection (b) may
be made--
``(A) to any whistleblower who is, or was at the
time the whistleblower acquired the original
information submitted to the Bureau, a member, officer,
or employee of an entity described in subclauses (I)
through (V) of subsection (h)(1)(C)(i);
``(B) to any whistleblower who is convicted of a
criminal violation related to the administrative
proceeding or court action for which the whistleblower
otherwise could receive an award under this section;
``(C) to any whistleblower who is found to be
liable for the conduct in the administrative proceeding
or court action, or a related action, for which the
whistleblower otherwise could receive an award under
this section;
``(D) to any whistleblower who planned and
initiated the conduct at issue in the administrative
proceeding or court action for which the whistleblower
otherwise could receive an award under this section;
``(E) to any whistleblower who submits information
to the Bureau that is based on the facts underlying the
administrative proceeding or court action previously
submitted by another whistleblower;
``(F) to any whistleblower who knowingly and
willfully makes any false, fictitious, or fraudulent
statement or representation, or who makes or uses any
false writing or document knowing the same to contain
any false, fictitious, or fraudulent statement or
entry; and
``(G) to any whistleblower who fails to submit
information to the Bureau in such form as the Bureau
may, by rule, require.
``(d) Representation.--
``(1) Permitted representation.--Any whistleblower who
makes a claim for an award under subsection (b) may be
represented by counsel.
``(2) Required representation.--
``(A) In general.--Any whistleblower who
anonymously makes a claim for an award under subsection
(b) shall be represented by counsel if the
whistleblower submits the information upon which the
claim is based.
``(B) Disclosure of identity.--Prior to the payment
of an award, a whistleblower shall disclose the
identity of the whistleblower and provide such other
information as the Bureau may require, directly or
through counsel of the whistleblower.
``(e) No Contract Necessary.--No contract or other agreement with
the Bureau is necessary for any whistleblower to receive an award under
subsection (b), unless otherwise required by the Bureau by rule.
``(f) Appeals.--Any determination made under this section,
including whether, to whom, or in what amount to make awards, shall be
in the discretion of the Bureau. Any such determination, except the
determination of the amount of an award if the award was made in
accordance with subsection (b), may be appealed to the appropriate
court of appeals of the United States not more than 30 days after the
determination is issued by the Bureau. The court shall review the
determination made by the Bureau in accordance with section 706 of
title 5, United States Code.
``(g) Reports to Congress.--Not later than October 30 of each year,
the Bureau shall transmit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report on the Bureau's whistleblower
award program under this section, including a description of the number
of awards granted and the types of cases in which awards were granted
during the preceding fiscal year.
``(h) Protection of Whistleblowers.--
``(1) Confidentiality.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), the Bureau and any officer
or employee of the Bureau, may not disclose any
information, including information provided by a
whistleblower to the Bureau, which could reasonably be
expected to reveal the identity of a whistleblower,
except in accordance with the provisions of section
552a of title 5, United States Code, unless and until
required to be disclosed to a defendant or respondent
in connection with a public proceeding instituted by
the Bureau or any entity described in subparagraph (C).
For purposes of section 552 of title 5, United States
Code, this paragraph shall be considered a statute
described in subsection (b)(3)(B) of such section 552.
``(B) Effect.--Nothing in this paragraph is
intended to limit the ability of the Attorney General
to present such evidence to a grand jury or to share
such evidence with potential witnesses or defendants in
the course of an ongoing criminal investigation.
``(C) Availability to government agencies.--
``(i) In general.--Without the loss of its
status as confidential in the hands of the
Bureau, all information referred to in
subparagraph (A) may, in the discretion of the
Bureau, when determined by the Bureau to be
necessary or appropriate, be made available
to--
``(I) the Department of Justice;
``(II) an appropriate department or
agency of the Federal Government,
acting within the scope of its
jurisdiction;
``(III) a State attorney general in
connection with any criminal
investigation;
``(IV) an appropriate department or
agency of any State, acting within the
scope of its jurisdiction; and
``(V) a foreign regulatory
authority.
``(ii) Maintenance of information.--Each of
the entities, agencies, or persons described in
clause (i) shall maintain information described
in that clause as confidential, in accordance
with the requirements in subparagraph (A).
``(2) Rights retained.--Nothing in this section shall be
deemed to diminish the rights, privileges, or remedies of any
whistleblower under section 1057, any other Federal or State
law, or under any collective bargaining agreement.
``(i) Rulemaking Authority.--The Bureau shall have the authority to
issue such rules as may be necessary or appropriate to implement the
provisions of this section.
``(j) Original Information.--Information submitted to the Bureau by
a whistleblower in accordance with rules implementing this section
shall not lose its status as original information solely because the
whistleblower submitted such information prior to the effective date of
such rules, provided such information was submitted after the date of
enactment of this section.''.
(b) Clerical Amendment.--The table of contents under section 1(b)
of the Dodd-Frank Wall Street Reform and Consumer Protection Act is
amended by inserting after the item relating to section 1017 the
following:
``Sec. 1017A. Whistleblower incentives and protection.''.
SEC. 3. AMENDMENT TO THE CONSUMER FINANCIAL CIVIL PENALTY FUND.
Section 1017(d)(2) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5497(d)(2)) is amended by striking ``under the Federal
consumer financial laws.'' and inserting ``under the Federal consumer
financial laws and for awards authorized under section 1017A.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line