Co-authors: Dorina Mastora, Deputy Compliance Officer, and Constantinos Antoniou, Lawyer Trainee
What happens when honesty is met with justice?
Envision a law that safeguards individuals who come forward to report serious issues like corruption, health risks, or environmental harm. Enter the Whistleblowing Law, introduced on February 4, 2022, which takes the Whistleblowing Directive from the European Union and integrates it into national regulations. Its primary objective? To protect people who report crimes and bad behavior.
Cyprus has now marked a significant step towards transparency and integrity with the unveiling of the Whistleblowing Law. Officially known as the Protection of Persons Reporting Breaches of Union and National Law, Law of 2022 (6(I)/2022), this law echoes the country's firm commitment to shielding those who raise their voices against corruption, regulatory non-compliance, risks to health and safety, and environmental harm.
Who does this law protect? At its core, this groundbreaking legislation, in harmony with the Whistleblowing Directive (Directive (EU) 2019/1937), champions the protection of diverse individuals - from civil servants, employees, and shareholders to volunteers and trainees— almost everyone. It stands as a beacon of reassurance, ensuring safety and security for the courageous who step forward with crucial information.
ENCOURAGING REPORTING, ENSURING PROTECTION
Embedded within the Whistleblowing Law is a profound emphasis on upholding the principles of the General Data Protection Regulation (GDPR) throughout the reporting process. Most notably, the law staunchly prohibits any form of retribution against whistleblowers, safeguarding them from retaliation for their bravery.
Reporting Channels and Compliance- Mark the date
This legislation mandates larger private entities (50 employees or more) and all public sector entities to institute internal reporting channels. Smaller companies, although not obligated, are encouraged to establish these channels voluntarily, while entities spanning 50 to 249 employees must comply by setting up internal reporting systems by December 17, 2023. Make sure you're compliant with the new requirements
Regulatory Oversight
Regulatory bodies will routinely review entities' compliance with reporting procedures, ensuring adherence to the law. These periodic reviews will ascertain fairness and regulatory compliance across the spectrum.
Navigating Reporting Protocols
How does one ensure confidentiality while reporting? The law meticulously details procedures governing internal reporting and monitoring, emphasizing secure and confidential channels. Within seven days of receiving reports, an acknowledgment must be sent to the reporting party, followed by the appointment of impartial entities responsible for monitoring reports, maintaining communication, and providing necessary updates. Designated individuals or services, like compliance officers, professional integrity officers, legal officers, financial directors, head auditors, and members of the board of directors, are entrusted with receiving, monitoring and impartially verifying reports. It is also imperative that they maintain open communication with the person who reported the problem.
Ensuring Integrity in External Reporting
Moreover, how do we uphold the integrity of external reporting? External reporting channels operate autonomously, ensuring the integrity, confidentiality, and accessibility of information. These channels facilitate reporting in written or oral forms, maintain strict confidentiality, and designate trained personnel responsible for handling reports. It is noted that the law do not apply in cases where a person discloses information directly to the press.
THE WEIGHT OF RESPONSIBILITY: FINES AND ACCOUNTABILITY
For Individuals:
Under this law, individuals who attempt to obstruct the reporting process, retaliate against reporting parties, engage in malicious proceedings against whistleblowers, or breach the confidentiality of a reporter's identity may face imprisonment for up to three years or a fine not exceeding €30,000, or both upon conviction.
For Legal Entities:
Likewise, legal entities bear similar penalties and might face prosecution for offenses committed by individuals acting on their behalf. Lack of supervision or control by an entity that allows offenses to occur may lead to a fine of up to €30,000.
This law is more than just words on paper; it's a promise of support and protection for those who dare to raise concerns. It seeks to foster a culture of transparency, resilience, and responsibility, ensuring that truth is championed and shielded.
In essence, Cyprus, through the Whistleblowing Law, is not just introducing legal measures - it's establishing a platform that values honesty, courage, and the pursuit of truth.
Justice is not an abstract notion; it's the protection of truth.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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