Good morning. The U.S. financial crimes watchdog said it intends to create formal regulations so it can pay whistleblowers to report money laundering, sanctions violations and other misconduct, Richard Vanderford reports for Risk Journal. 

• 30% payout: The Treasury Department’s Financial Crimes Enforcement Network on Monday submitted to the Federal Register a proposed new rule that would implement a law allowing it to direct up to 30% of fines toward tipsters who report misconduct.
   
• Long time coming: The move comes after longstanding bipartisan criticism that FinCEN was moving too slowly to implement its whistleblower program, which Congress established as part of a 2020 defense bill. A 2022 bill added sanctions evasion to the list of violations that can be reported to FinCEN for a reward. Lawmakers from both parties criticized the then-Biden controlled Treasury over apparent foot-dragging in formally establishing the tips program.
   
• Tips coming in: Treasury Secretary Scott Bessent told Fox News on Monday the department had already received more than 700 leads via the program in its current form.
   
• Messaging: “President Trump has been clear that Americans have a right to know that their tax dollars are not being diverted to fund acts of global terror or to fund luxury cars for fraudsters,” Bessent said in a Treasury release. 

Head of sexual-wellness business OneTaste sentenced to nine years in prison.

A federal judge on Monday sentenced Nicole Daedone, the founder of women’s sexual-wellness company OneTaste, to nine years in prison for what prosecutors said was a more-than-decadelong conspiracy to force her students and practitioners into performing unpaid work.

Daedone was convicted last year of one count of conspiracy to commit forced labor. Her co-defendant Rachel Cherwitz was also convicted and has yet to be sentenced. Prosecutors accused both women of conspiring to coerce OneTaste practitioners to perform tasks ranging from menial labor to sexual services for little or no pay. The two women also pushed practitioners into debt, leading them to believe they needed to take OneTaste classes in order to reach sexual wellness and enlightenment, according to prosecutors.

The prosecution was unusual because forced-labor conspiracy is rarely charged alone. It is more commonly used for defendants who exploit illegal immigrants or other vulnerable people.

U.S. tells banks to guard against healthcare scams.

The Trump administration told banks they need to be on the lookout for international crime rings trying to rip off federally backed health programs such as Medicare and Medicaid, Risk Journal reports.

A criminal group’s recent alleged theft of nearly $1 billion from U.S.-government-backed health insurers is just one example of a new trend of transnational criminal groups plaguing the country’s healthcare system, the U.S. Treasury’s Financial Crimes Enforcement Network said Monday.

Criminal rings across the world are using straw owners to establish shell companies and submit false billing claims to Medicare and other government insurance programs for a chance at hundreds of millions of dollars in reimbursement payments, FinCEN said in an alert.

• The Trump administration proposed a regulation on Monday that is intended to open 401(k)s and similar retirement plans to private equity and private credit.
   
• The U.S. Treasury’s Office of Foreign Assets Control issued three new Venezuela-related general licenses, Risk Journal reports, opening the country’s gold and minerals sector to established U.S. companies as the Trump administration continues to roll back sanctions following the January capture of former President Nicolás Maduro.
   
• Apple Distribution International, an Irish subsidiary of Apple responsible for App Store payments, has been fined £390,000 pounds, about $516,500, by the U.K.’s Office of Financial Sanctions Implementation because of two payments it made to a Russian streaming company owned by a designated entity.

Risk Journal on March 31 hosts a discussion on debanking and fair access banking laws with Will Jacquet, a partner at Morgan Lewis and former head of enforcement at the Office of the Comptroller of the Currency; and Eric Young, senior managing director, Guidepost Solutions, and a former chief compliance officer. You can register here.

Air Canada CEO exit comes after language backlash following fatal jet crash. 

Michael Rousseau never learned French and it appears to have cost him his job.

The chief executive officer of Air Canada is leaving the airline amid intense backlash over his handling of a crash at LaGuardia Airport that killed the two pilots of an Air Canada Express flight and injured dozens of passengers. The 68-year-old was under pressure from politicians and many others in French-speaking Quebec, where the airline is based, after he responded to the March 22 runway collision with a video in English and didn’t share his condolences in French.

Trump weighs military operation to extract Iran’s uranium. 

President Trump is weighing a military operation to extract nearly 1,000 pounds of uranium from Iran, according to U.S. officials, a complex and risky mission that would likely put American forces inside the country for days or longer.

Trump hasn’t made a decision on whether to give the order, the officials said, adding that he is considering the danger to U.S. troops. But the president remains generally open to the idea, according to the officials, because it could help accomplish his central goal of preventing Iran from ever making a nuclear weapon.

See also: 

• Trump Tells Aides He’s Willing to End War Without Reopening Hormuz
• Lebanon Expelled Iran’s Ambassador. He Refused To Leave
• Iran’s Wealth Is Parked on London’s Billionaires’ Row
• America Downs Cheap Drones With Million-Dollar Missiles. A Fix Is In the Works.

Powell says Fed can look past oil shock, but warns patience has limits.

Federal Reserve Chair Jerome Powell said Monday the central bank is inclined to hold rates steady and look past the energy shock from the war in Iran but cautioned that it might not be able to sit on the sidelines if rising prices shift the public’s expectations about inflation over time.

Powell, speaking to students at Harvard University, laid out the textbook case for patience: Energy disruptions tend to be short-lived, and monetary policy works too slowly to counteract them in real time. He added a critical caveat, however, by noting how five years of above-target inflation made it harder to assume the public would simply shrug off another round of rising prices.

• Transportation Security Administration officers are getting paid again, but many airports remain short-staffed. 
   
• Netflix is ready for more football. The streamer is looking to expand its current two-game package to four games, according to people familiar with the matter.
   
• The loss of small perks and rise of AI have conspired to strip work of all fun.
   
• Unilever is in advanced talks to combine its food business with spice-maker McCormick in a deal that would create a new food behemoth worth roughly $60 billion, including debt, according to people familiar with the matter.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

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