The Securities and Exchange Commission (SEC) has just announced its largest-ever whistle-blower award, with an unspecified recipient receiving over $279 million. This record-breaking payout shows just how much the SEC values the information provided by its whistle-blowers.

Since the introduction of the Dodd-Frank Act in 2011, which aimed to provide more openness, accountability, and investor protection, the SEC's Office of the Whistleblower has been in existence. Whistle-blowers can be given awards of up to 30% of monetary sanctions collected by the SEC if the sanctions exceed $1 million.

The SEC's investor protection fund is used to give out the awards and the fund comes from the money collected from violators of the securities laws, not from the harmed investors. However, for their safety, whistle-blowers commonly remain anonymous. The SEC announced million dollar awards given to two separate people in March 2021 for helping with their enforcement.

The value of whistle-blowers is not just appreciated at the SEC. To combat financial crimes, many countries have set up hotlines or accept complaints, such as the UK’s Financial Conduct Authority, Germany, and other G7 nations. Canada also accepts complaints in writing, by mail or email.

Through these awards, the SEC is sending out a clear message: those who keep an eye out for financial crimes and help fight them are rewarded. With a record-breaking award of $279 million it's no wonder why some people might want to spend more time looking into suspicious activity or why whistle-blowers might actively seek out opportunities that could lead to getting a reward.



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