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I
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 Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘CFPB Whistleblower
4
Incentives and Protection Act’’.
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SEC. 2. BUREAU WHISTLEBLOWER INCENTIVES AND PRO-
1
TECTION.
2
(a) IN GENERAL.—The Consumer Financial Protec-
3
tion Act of 2010 (12 U.S.C. 5481 et seq.) is amended by
4
inserting after section 1017 the following:
5
‘‘SEC. 1017A. WHISTLEBLOWER INCENTIVES AND PROTEC-
6
TION.
7
‘‘(a) DEFINITIONS.—In this section:
8
‘‘(1) ADMINISTRATIVE PROCEEDING OR COURT
9
ACTION.—The term ‘administrative proceeding or
10
court action’ means any judicial or administrative
11
action brought by the Bureau that results in mone-
12
tary sanctions exceeding $1,000,000.
13
‘‘(2) FUND.—The term ‘Fund’ means the ‘Con-
14
sumer Financial Civil Penalty Fund’ established
15
under section 1017(d)(1).
16
‘‘(3) MONETARY SANCTIONS.—The term ‘mone-
17
tary sanctions’, when used with respect to any ad-
18
ministrative proceeding or court action means any
19
monies, including penalties, disgorgement, restitu-
20
tion, or interest, ordered to be paid or other
21
amounts of relief obtained under section 1055(a)(2).
22
‘‘(4)
ORIGINAL
INFORMATION.—The
term
23
‘original information’ means information that—
24
‘‘(A) is derived from the independent
25
knowledge or analysis of a whistleblower;
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‘‘(B) is not known to the Bureau from any
1
other source, unless the whistleblower is the
2
original source of the information;
3
‘‘(C) is not exclusively derived from an al-
4
legation made in a judicial or administrative
5
hearing, in a governmental report, hearing, or
6
from the news media, unless the whistleblower
7
is a source of the information; and
8
‘‘(D) is not exclusively derived from an al-
9
legation made in an audit, examination, or in-
10
vestigation.
11
‘‘(5) SUCCESSFUL
ENFORCEMENT.—The term
12
‘successful enforcement’, when used with respect to
13
any administrative proceeding or court action, in-
14
cludes any settlement of such action.
15
‘‘(6) WHISTLEBLOWER.—The term ‘whistle-
16
blower’ means any individual, or 2 or more individ-
17
uals acting jointly, who provides original information
18
relating to a violation of Federal consumer financial
19
law, consistent with any rule issued by the Bureau
20
under this section.
21
‘‘(b) AWARDS.—
22
‘‘(1) IN GENERAL.—In any administrative pro-
23
ceeding or court action the Bureau, subject to rules
24
prescribed by the Bureau and subject to subsection
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(c), shall pay an award or awards to 1 or more whis-
1
tleblowers who voluntarily provided original informa-
2
tion that led to the successful enforcement of the ad-
3
ministrative proceeding or court action in an aggre-
4
gate amount equal to—
5
‘‘(A) not less than the greater of—
6
‘‘(i) 10 percent, in total, of monetary
7
sanctions imposed and collected in the ad-
8
ministrative proceeding or court action; or
9
‘‘(ii) $50,000; and
10
‘‘(B) not more than 30 percent, in total, of
11
such monetary sanctions.
12
‘‘(2) PAYMENT OF AWARDS.—Any amount paid
13
under paragraph (1) shall be paid from the Fund.
14
‘‘(3) AWARD MAXIMUM.—Notwithstanding any
15
other provision in this section, the maximum award
16
to any single whistleblower is limited to $5,000,000.
17
‘‘(c) DETERMINATION OF AMOUNT OF AWARD; DE-
18
NIAL OF AWARD.—
19
‘‘(1)
DETERMINATION
OF
AMOUNT
OF
20
AWARD.—
21
‘‘(A) DISCRETION.—The determination of
22
the percentage amount of an award made under
23
subsection (b) shall be in the discretion of the
24
Bureau.
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‘‘(B) CRITERIA.—In determining the per-
1
centage amount of an award made under sub-
2
section (b), the Bureau shall take into consider-
3
ation—
4
‘‘(i) the significance of the informa-
5
tion provided by the whistleblower to the
6
successful enforcement of the administra-
7
tive proceeding or court action;
8
‘‘(ii) the degree of assistance provided
9
by the whistleblower and any legal rep-
10
resentative of the whistleblower in an ad-
11
ministrative proceeding or court action;
12
‘‘(iii) the programmatic interest of the
13
Bureau in deterring violations of Federal
14
consumer financial law (including applica-
15
ble rules) by making awards to whistle-
16
blowers who provide information that leads
17
to the successful enforcement of such laws;
18
and
19
‘‘(iv) such additional relevant factors
20
as the Bureau may establish by rule.
21
‘‘(2) DENIAL
OF
AWARD.—No award under
22
subsection (b) may be made—
23
‘‘(A) to any whistleblower who is, or was at
24
the time the whistleblower acquired the original
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information submitted to the Bureau, a mem-
1
ber, officer, or employee of an entity described
2
in subclauses (I) through (V) of subsection
3
(h)(1)(C)(i);
4
‘‘(B) to any whistleblower who is convicted
5
of a criminal violation related to the adminis-
6
trative proceeding or court action for which the
7
whistleblower otherwise could receive an award
8
under this section;
9
‘‘(C) to any whistleblower who is found to
10
be liable for the conduct in the administrative
11
proceeding or court action, or a related action,
12
for which the whistleblower otherwise could re-
13
ceive an award under this section;
14
‘‘(D) to any whistleblower who planned
15
and initiated the conduct at issue in the admin-
16
istrative proceeding or court action for which
17
the whistleblower otherwise could receive an
18
award under this section;
19
‘‘(E) to any whistleblower who submits in-
20
formation to the Bureau that is based on the
21
facts underlying the administrative proceeding
22
or court action previously submitted by another
23
whistleblower;
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‘‘(F) to any whistleblower who knowingly
1
and willfully makes any false, fictitious, or
2
fraudulent statement or representation, or who
3
makes or uses any false writing or document
4
knowing the same to contain any false, ficti-
5
tious, or fraudulent statement or entry; and
6
‘‘(G) to any whistleblower who fails to sub-
7
mit information to the Bureau in such form as
8
the Bureau may, by rule, require.
9
‘‘(d) REPRESENTATION.—
10
‘‘(1)
PERMITTED
REPRESENTATION.—Any
11
whistleblower who makes a claim for an award under
12
subsection (b) may be represented by counsel.
13
‘‘(2) REQUIRED REPRESENTATION.—
14
‘‘(A) IN
GENERAL.—Any whistleblower
15
who anonymously makes a claim for an award
16
under subsection (b) shall be represented by
17
counsel if the whistleblower submits the infor-
18
mation upon which the claim is based.
19
‘‘(B) DISCLOSURE OF IDENTITY.—Prior to
20
the payment of an award, a whistleblower shall
21
disclose the identity of the whistleblower and
22
provide such other information as the Bureau
23
may require, directly or through counsel of the
24
whistleblower.
25
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‘‘(e) NO CONTRACT NECESSARY.—No contract or
1
other agreement with the Bureau is necessary for any
2
whistleblower to receive an award under subsection (b),
3
unless otherwise required by the Bureau by rule.
4
‘‘(f) APPEALS.—Any determination made under this
5
section, including whether, to whom, or in what amount
6
to make awards, shall be in the discretion of the Bureau.
7
Any such determination, except the determination of the
8
amount of an award if the award was made in accordance
9
with subsection (b), may be appealed to the appropriate
10
court of appeals of the United States not more than 30
11
days after the determination is issued by the Bureau. The
12
court shall review the determination made by the Bureau
13
in accordance with section 706 of title 5, United States
14
Code.
15
‘‘(g) REPORTS TO CONGRESS.—Not later than Octo-
16
ber 30 of each year, the Bureau shall transmit to the Com-
17
mittee on Financial Services of the House of Representa-
18
tives and the Committee on Banking, Housing, and Urban
19
Affairs of the Senate a report on the Bureau’s whistle-
20
blower award program under this section, including a de-
21
scription of the number of awards granted and the types
22
of cases in which awards were granted during the pre-
23
ceding fiscal year.
24
‘‘(h) PROTECTION OF WHISTLEBLOWERS.—
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‘‘(1) CONFIDENTIALITY.—
1
‘‘(A) IN GENERAL.—Except as provided in
2
subparagraphs (B) and (C), the Bureau and
3
any officer or employee of the Bureau, may not
4
disclose any information, including information
5
provided by a whistleblower to the Bureau,
6
which could reasonably be expected to reveal
7
the identity of a whistleblower, except in ac-
8
cordance with the provisions of section 552a of
9
title 5, United States Code, unless and until re-
10
quired to be disclosed to a defendant or re-
11
spondent in connection with a public proceeding
12
instituted by the Bureau or any entity described
13
in subparagraph (C). For purposes of section
14
552 of title 5, United States Code, this para-
15
graph shall be considered a statute described in
16
subsection (b)(3)(B) of such section 552.
17
‘‘(B) EFFECT.—Nothing in this paragraph
18
is intended to limit the ability of the Attorney
19
General to present such evidence to a grand
20
jury or to share such evidence with potential
21
witnesses or defendants in the course of an on-
22
going criminal investigation.
23
‘‘(C)
AVAILABILITY
TO
GOVERNMENT
24
AGENCIES.—
25
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‘‘(i) IN GENERAL.—Without the loss
1
of its status as confidential in the hands of
2
the Bureau, all information referred to in
3
subparagraph (A) may, in the discretion of
4
the Bureau, when determined by the Bu-
5
reau to be necessary or appropriate, be
6
made available to—
7
‘‘(I) the Department of Justice;
8
‘‘(II) an appropriate department
9
or agency of the Federal Government,
10
acting within the scope of its jurisdic-
11
tion;
12
‘‘(III) a State attorney general in
13
connection with any criminal inves-
14
tigation;
15
‘‘(IV) an appropriate department
16
or agency of any State, acting within
17
the scope of its jurisdiction; and
18
‘‘(V) a foreign regulatory author-
19
ity.
20
‘‘(ii) MAINTENANCE
OF
INFORMA-
21
TION.—Each of the entities, agencies, or
22
persons described in clause (i) shall main-
23
tain information described in that clause
24
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as confidential, in accordance with the re-
1
quirements in subparagraph (A).
2
‘‘(2) RIGHTS RETAINED.—Nothing in this sec-
3
tion shall be deemed to diminish the rights, privi-
4
leges, or remedies of any whistleblower under section
5
1057, any other Federal or State law, or under any
6
collective bargaining agreement.
7
‘‘(i) RULEMAKING AUTHORITY.—The Bureau shall
8
have the authority to issue such rules as may be necessary
9
or appropriate to implement the provisions of this section.
10
‘‘(j) ORIGINAL
INFORMATION.—Information sub-
11
mitted to the Bureau by a whistleblower in accordance
12
with rules implementing this section shall not lose its sta-
13
tus as original information solely because the whistle-
14
blower submitted such information prior to the effective
15
date of such rules, provided such information was sub-
16
mitted after the date of enactment of this section.’’.
17
(b) CLERICAL AMENDMENT.—The table of contents
18
under section 1(b) of the Dodd-Frank Wall Street Reform
19
and Consumer Protection Act is amended by inserting
20
after the item relating to section 1017 the following:
21
‘‘Sec. 1017A. Whistleblower incentives and protection.’’.
SEC. 3. AMENDMENT TO THE CONSUMER FINANCIAL CIVIL
22
PENALTY FUND.
23
Section 1017(d)(2) of the Consumer Financial Pro-
24
tection Act of 2010 (12 U.S.C. 5497(d)(2)) is amended
25
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by striking ‘‘under the Federal consumer financial laws.’’
1
and inserting ‘‘under the Federal consumer financial laws
2
and for awards authorized under section 1017A.’’.
3
Æ
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