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Whistleblowing Services
All organizations are vulnerable to fraud and ethical misconduct. Statistics show that half of these challenges are detected by receiving tips from whistleblowers.
A whistleblower is a person, often an employee of a public, private or governmental organization who reports ethical misconduct, data manipulation, illicit or immoral activities that are happening within their organization or at third parties with which their organization collaborates.
The European Union has established a standard on whistleblower policy through the EU Whistleblower Directive which applies to all companies with more than 250 employees and Member States will have to adopt a set of rules and regulations to conform to this new directive.
EY can help your organization by supporting with the end-to-end process, from establishing a whistleblower framework (or ensuring that the existing framework meets the standards set out by legislation), providing a secured confidential channel to receive and manage allegations (VCO), supporting in the triage and investigation of allegations reported through the channel and providing legal advice, as needed, to ensure the process is compliant with existing regulations (whistleblowing, labor law, GDPR etc.).
The EY Global Integrity Report 2022 highlights that 63% of respondents from Romania state to have NEVER reported issues of misconduct, be it to management or through a Whistleblowing hotline (behind the Eastern European average of 67% of respondents). Also, 36% of respondents have had concerns about misconduct but have not reported it and 58% of those who have reported misconduct felt under pressure not to report. Moreover, even if properly reported, only a minority of respondents (49%) agrees that their companies have taken action against employees breaching integrity standards.
Facts:
- The EU has adopted a new Directive (EU) 2019/1937 which meant to be transposed into national legislation by December 17, 2021, regarding the protection of employees (including former and future employees) who report breaches of Union law (the so-called Whistleblower Protection Directive).
- The Directive applies to legal entities in private and public sectors with more than 250 employees, and it intends to protect whistleblowers from retaliation by implementing organizational-level solutions. Failure to comply with the upcoming duties may materially and adversely affect the company's operations and reputation.
Duties:
- Establishment of confidential, secured local internal reporting channels (accessible also for third parties), that allow for maintaining communication with the whistleblower
- Acknowledgment of receipt of the report to the whistleblower within 7 days and feedback on the matter within 3 months;
- Ensuring that whistleblowers are protected effectively against retaliation
- Exercising due diligence in the course of internal investigation and other follow-up activities carried out by an impartial person or department.
Penalties:
The Directive requires that penalties be established for:
- Breaches of the duty of maintaining the confidentiality of the identity of whistleblowers
- Any instances of hindering the reporting process
- Taking retaliatory or other adverse actions against whistleblowers
Across EU, the proposed penalties for non-compliance with the requirements range from around EUR 40K to EUR 100K, excluding any additional corporate criminal liability fines, if the case.
In Romania, the proposed penalties for non-compliance with the requirements range from RON 1,500 to RON 30,000 Failure to create internal reporting channels as required by the law will be sanctioned with a fine ranging between RON 2,500 to RON 25,000.
EY Virtual Compliance Officer is a whistleblowing tool created by EY. It is fully compliant with the requirements of the EU Whistleblowing Directive and meets the requirements of the GDPR. EY Virtual Compliance Officer streamlines the reporting process for whistleblowers which provides companies with comprehensive management reports and - if needed - offers the support of EY professionals in internal investigations.
VCO - infographic
Benefits for your organization
Facts:
- The EU has adopted a new Directive (EU) 2019/1937 which meant to be transposed into national legislation by December 17, 2021, regarding the protection of employees (including former and future employees) who report breaches of Union law (the so-called Whistleblower Protection Directive).
- The Directive applies to legal entities in private and public sectors with more than 250 employees, and it intends to protect whistleblowers from retaliation by implementing organizational-level solutions. Failure to comply with the upcoming duties may materially and adversely affect the company's operations and reputation.
Facts:
- The EU has adopted a new Directive (EU) 2019/1937 which meant to be transposed into national legislation by December 17, 2021, regarding the protection of employees (including former and future employees) who report breaches of Union law (the so-called Whistleblower Protection Directive).
- The Directive applies to legal entities in private and public sectors with more than 250 employees, and it intends to protect whistleblowers from retaliation by implementing organizational-level solutions. Failure to comply with the upcoming duties may materially and adversely affect the company's operations and reputation.
Facts:
- The EU has adopted a new Directive (EU) 2019/1937 which meant to be transposed into national legislation by December 17, 2021, regarding the protection of employees (including former and future employees) who report breaches of Union law (the so-called Whistleblower Protection Directive).
- The Directive applies to legal entities in private and public sectors with more than 250 employees, and it intends to protect whistleblowers from retaliation by implementing organizational-level solutions. Failure to comply with the upcoming duties may materially and adversely affect the company's operations and reputation.
VCO - UE Directive
The Directive sets an EU-wide minimum standard – a common set of requirements — for which penalties will be set individually by each Member State.
The minimum standard includes:
- establishing secure whistleblowing channels
- acknowledgement of receipt of the report to the whistleblower within 7 days of that receipt
- designation of an impartial person or department competent for following-up on the reports
- diligent follow-up by the designated person or department
- providing feedback on actions envisaged or taken as follow-up to the whistleblower within 3 months of acknowledgement of receipt of the report
- provision of clear and easily accessible information regarding the procedures for reporting externally
The deadline for bringing into force laws, regulations and administrative provisions necessary to comply with this Directive was set for 17 December 2021. This is currently delayed, however, it is expected that the local legislation is transposed in the coming months.
Once transposed into domestic legislations, it will be mandatory for large organizations (employing at least 250 workers) to implement whistleblowing channels, protect whistleblowers, establish processes for diligent follow-up on the report and to communicate with the whistleblower.
Select your EY Virtual Compliance Officer plan
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VCO - table
Are you interested?
Let’s talk and decide which EY Virtual Compliance Officer plan would best suit the needs of your organization.
- Why EY Virtual Compliance Officer?
- What does EY Virtual Compliance Officer offer?
- FAQ
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