New DOJ Data Rule FAQ Offers Financial Reward for Whistleblowers
It’s clear DOJ is taking its data transfer rule seriously, given its newly released FAQ offering “substantial” financial reward for whistleblowers, Hogan Lovells attorney James Denvil said in a podcast about the Data Security Program released Thursday.
Sign up for a free preview to unlock the rest of this article
Privacy Daily provides accurate coverage of newsworthy developments in data protection legislation, regulation, litigation, and enforcement for privacy professionals responsible for ensuring effective organizational data privacy compliance.
“Without much fanfare, they just slipped in a new FAQ” in September, said Denvil. The FAQ states that “individuals reporting violations of the DSP may be eligible for financial incentives if they do so through” the Financial Crimes Enforcement Network whistleblower incentive program. The FAQ says whistleblowers may receive “substantial financial awards” if they report information that “leads to a successful enforcement action by NSD that results in monetary penalties exceeding $1,000,000.”
“It indicates that they are incentivizing people to pay attention to” the DSP. “To whistleblow if they identify potential violations and reminding them that they may receive a financial reward.”
Denvil noted DOJ hasn’t yet announced any enforcement action and stakeholders are awaiting DOJ’s list of covered persons.