Whistleblowing: ensure programs are fit for 2025

5. Increased incentivization for whistleblowers to report to the authorities: Regulators have continued to introduce monetary incentives for external whistleblowing. For example, in the last year, the U.S. Department of Justice (DOJ) established the Corporate Whistleblower Awards Pilot Program, adding to established programs under the SEC, CFTC, and FinCen.

In short, individuals who provide truthful information about misconduct that is not already known to the DOJ, who were not involved in the criminal activity, and who have no other financial disclosure incentives, are now eligible to receive a portion of any resulting forfeiture.

Meanwhile, existing U.S. programs continue to issue massive awards—in the last year, the SEC’s whistleblower program gave out its highest total of awards, including one for USD98 million. It is no wonder that Nick Ephgrave, the Director of the UK Serious Fraud Office (SFO), is calling for a UK rewards program for whistleblowers.

6. Technological advancements in whistleblowing platforms: The use of technology to facilitate whistleblowing has gained traction, with many organizations adopting digital platforms that allow for anonymous reporting and secure communication. These platforms help in maintaining the confidentiality of whistleblowers and in ensuring that reports are handled efficiently and effectively.

The adoption of artificial intelligence and machine learning in whistleblowing platforms will become more prevalent. These technologies can enhance the efficiency and effectiveness of whistleblowing mechanisms by identifying patterns of misconduct and providing insights into potential risks. However, they also present heightened risks in areas such as personal data and intellectual property rights, necessitating careful management and oversight.

Conclusion

For organizations operating in today’s regulatory landscape, maintaining robust whistleblowing policies, supported by technological innovations and cross-border compliance strategies, has never been more important.  Indeed, staying current and focused on promoting an internal speak-up culture will be essential in navigating the evolving landscape of corporate governance and regulatory expectations across the globe.