Financial Compensation for CFPB Whistleblowers Act
This bill requires the Consumer Financial Protection Bureau to provide rewards to whistleblowers who report information relating to a violation of consumer financial law resulting in certain monetary sanctions exceeding $1 million. Specifically, the bureau must award compensation to whistleblowers for 10%-30% of the collected penalties. In cases where the bureau collects less than $1 million in penalties, the bureau must award any single whistleblower 10% of the amount collected or $50,000, whichever is greater. The bill also sets forth requirements regarding the legal representation of a whistleblower and provides for confidentiality regarding the whistleblower's identity.
To amend the Consumer Financial Protection Act of 2010 to provide for 
                whistleblower incentives and protection.

    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 ``Financial Compensation for CFPB 
Whistleblowers Act''.

SEC. 2. BUREAU WHISTLEBLOWER INCENTIVES AND PROTECTION.

    (a) In General.--The Consumer Financial Protection Act (12 U.S.C. 
5481 et seq.) is amended by adding at the end of 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' 
        means, with respect to any administrative proceeding or court 
        action, any monies, including penalties, disgorgement, 
        restitution, 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' includes, with respect to any administrative 
        proceeding or court action brought by the Bureau, any 
        settlement of such proceeding or 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 or 
        regulation issued by the Bureau under this section.
    ``(b) Awards.--
            ``(1) In general.--In any administrative proceeding or 
        court action the Bureau, subject to regulations 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 covered administrative proceeding or court action in an 
        aggregate amount equal to--
                    ``(A) not less than 10 percent, in total, of the 
                civil money penalties collected by the Bureau in the 
                action; and
                    ``(B) not more than 30 percent, in total, of the 
                civil money penalties collected by the Bureau in the 
                action.
            ``(2) Payment of awards.--Any amount paid under paragraph 
        (1) shall be paid from the Fund.
            ``(3) Award minimum.--If the Bureau collects less than 
        $1,000,000 in civil money penalties in the action, the Bureau 
        shall provide for an award to any single whistleblower equal to 
        the greater of--
                    ``(A) 10 percent of the civil money penalties 
                collected; or
                    ``(B) $50,000.
    ``(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 
                        regulations) 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 or regulation, 
                        including the amount available in the Fund.
            ``(2) Denial of award.--No award under subsection (b) shall 
        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; and
                    ``(F) to any whistleblower who fails to submit 
                information to the Bureau in such form as the Bureau 
                may, by rule or regulation, 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 or 
regulation.
    ``(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.
    ``(g) Reports to Congress.--Not later than December 31 of each 
year, the Bureau shall transmit to the House Committee on Financial 
Services and the Senate Committee on Banking, Housing, and Urban 
Affairs 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, shall 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 and regulations as may be necessary or appropriate to 
implement the provisions of this section consistent with the purposes 
of this section.
    ``(j) Original Information.--Information submitted to the Bureau by 
a whistleblower in accordance with rules or regulations 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 or regulations, provided such information 
was submitted after the date of enactment of this section.
    ``(k) Provision of False Information.--A 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, shall not be entitled to an award under 
this section and shall be subject to prosecution under section 1001 of 
title 18, United States Code.
    ``(l) Unenforceability of Certain Agreements.--
            ``(1) No waiver of rights and remedies.--Except as provided 
        under paragraph (3), and notwithstanding any other provision of 
        law, the rights and remedies provided for in this section may 
        not be waived by any agreement, policy, form, or condition of 
        employment, including by any predispute arbitration agreement.
            ``(2) No predispute arbitration agreements.--Except as 
        provided under paragraph (3), and notwithstanding any other 
        provision of law, no predispute arbitration agreement shall be 
        valid or enforceable to the extent that it requires arbitration 
        of a dispute arising under this section.
            ``(3) Exception.--Notwithstanding paragraphs (1) and (2), 
        an arbitration provision in a collective bargaining agreement 
        shall be enforceable as to disputes arising under subsection 
        (a)(4), unless the Bureau determines, by rule, that such 
        provision is inconsistent with the purposes of this title.''.
    (b) 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, in the first sentence, by inserting ``and for awards 
authorized under section 1017A'' before the period at the end.
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Financial Compensation for CFPB Whistleblowers Act
A bill to amend the Consumer Financial Protection Act of 2010 to provide for whistleblower incentives and protection.
Financial Compensation for CFPB Whistleblowers Act
Sen. Cortez Masto, Catherine