After the publication, in the Official Journal of the European Union of 26 November, 2019, of the new Directive (EU) 2019/1937 of the European Parliament and of the Council, of 23 October 2019, on the protection of persons who report breaches of Union Law (“Whistleblowing”), we will see below the fundamental aspects of the same that must be fulfilled before December 17, 2021 as stipulated in the aforementioned community standard.

In the legal framework to which this Directive corresponds, Compliance or Regulatory Compliance, its enactment is aimed at the effectiveness and transparency that supposes the implementation of an ethical channel in organizations that ensures the anonymity and lack of retaliation to the possible reporting person, both in the private and public sectors.

What is a Reporting Channel or a Whistleblower Channel?

Regarding the definition in itself of an “Ethical or reporting channel” we would be referring to an internal or external communication channel of the organizations through which to transfer any irregular or criminal behavior detected both in the organization itself and by third parties that have a relationship with it.

In other words, a Whistleblower Channel is a tool that allows you to communicate, in a confidential manner and with a simple form, the potentially irregular activities and behavior that could lead to a breach of the Code of Conduct and / or the possible commission of a criminal offence.

In general, this reporting tool is channeled through the figure of the Compliance Officer or the Compliance Committee if it exists in the organization. In such a way, that it is only the latter who knows the identity of the reporting person and the conduct or event reported. Therefore, it is easier to manage the report in question through private meetings in the investigation phase, to subsequently move to the instruction phase.

What companies need a whistleblower channel?

The text of this standard establishes that legal entities in the private sector with 50 or more workers and those operating in public health or environmental sector, should be subject to the obligation to establish internal reporting channels and a procedure to follow-up the reports for their correct management.

COMPANIES currently obligated:

• • Companies that want to implement a crime, criminal risks and anti-bribery prevention system.
• • Obliged subjects in the detection of money laundering.

WITH the directive approved by the European Union in 2019, these will soon be obliged:

• • Companies with 50 or more workers
• • Companies with an annual turnover of 10 million eurosor more.
• • Companies of any size that operate in the financial sector.

What implementing a Whistleblower channel provides?

1. Adaptation to the current regulations

• Organic law 10/2010 – Prevetion of Money laudering
• Organic law 1/2015 – Penal Code
• Organic law 3/2018 – Data protection

2. It is key to the prevention and detection of irregular actions, avoiding possible criminal liability and possible reputational damage

3. Conformity of other regulations with the Whistleblower Channel

• Reporting channel appropriate to GDPR
• Criminal Compliance
• • ISO 27001 – Information Security
• Prevention of Money laudering
• ISO 37001 – Anti-bribery

4. It is an indicator of transparency for the company in terms of protecting the company’s reputation

Who should the Whistleblower Channel be available to?

Furthermore, in Directive (EU) 2019/1937, it is determined that the reporting channel must be available not only to the organization’s employees, but also to other participants in the organization, such as partners, administrators or self-employed workers hired by it.

Referring to possible forms of compensation for the reporting persons in the event of retaliation after the report, are clearly identified readmission to the workplace in the event of dismissal, the maintenance of the labor conditions of origin prior to the report, compensation for loss of salary and income, and compensation for damages, including moral damages.

Another possible modality is the absolute anonymity of the identity of the report person, being the denounced fact only known to the Compliance Officer or Compliance Committee. In this way, it is more difficult to investigate irregular behavior since you cannot expand the information on it by going to a particular person unless you have software that allows you to collect this information.

In conclusion, it should be noted that at GlobalSUITE Solutions we provide necessary help and advice for the implementation of a whistleblower channel, as well as its management through an an intuitive whistleblower channel software that optimizes the management of this channel and results in an effective achievement of the requirements derived from Directive (EU) 2019/1937.