EQS Group AG: EU Whistleblower Directive Comes Into Force: Internal Reporting Channels Mandatory in the EU from 2021

EU Whistleblower Directive Comes Into Force:

Internal Reporting Channels Mandatory in the EU from 2021

The road has been cleared for stronger whistleblower protection in the European Union. New rules on whistleblower protection, adopted by the EU Parliament in April, have now been published as Directive (EU) 2019/1937 in the Official Journal of the European Union and come into force on 16 December 2019. The new regulations oblige companies with more than 50 employees to offer internal reporting channels through which concerned parties can make confidential reports of legal violations such as tax fraud, money laundering or data protection violations. EU member states now have until December 2021 to implement the Directive into national laws.

This sends a strong signal to whistleblowers. For all their courage in shining a light on illegal activities and abuse, whistleblowers still frequently face reprisals, hostility and discrimination. This should now be a thing of the past. Digital whistleblowing systems such as EQS Integrity Line, which guarantee anonymity for the reporter and offer legally-compliant case handling features, are ideally placed to ensure whistleblower protection.

Moritz Homann, Managing Director Corporate Compliance for EQS Group, welcomes increased protection for whistleblowers: “Whistleblowers will now finally receive the respect they deserve before the law. The information they provide can often be used to identify risks at an early stage and eliminate problems before they lead to serious consequences for the company concerned.”

As a provider of digital whistleblowing systems, EQS Group benefits from the new legal regulations. In recent months many companies have proactively set up internal reporting points to avoid financial and reputational damage.

EQS Integrity Line, one of the leading digital whistleblowing systems used by around 200 companies worldwide, already meets all the requirements of the new EU Directive. Moritz Homann recommends that companies which don’t have an internal reporting channel should act quickly: “The successful implementation of a whistleblower system depends heavily on employee acceptance, which is why it is also important to communicate processes and compliance measures clearly and transparently – and with this you can’t start early enough.”

Go to https://go.eqs.com/eu-gesetz for recommended actions and all information on the new legal regulations. You can also check how well your company is prepared for the EU Whistleblower Directive.
 

Contact:

Marcus Sultzer
+49 89 210298127
marcus.sultzer@eqs.com 

About EQS Group:

EQS Group is a leading international provider of regulatory technology (RegTech) in the fields of corporate compliance and investor relations. In working with EQS Group, thousands of companies worldwide inspire trust by fulfilling complex national and international disclosure obligations, minimizing risks and communicating transparently with stakeholders.

EQS Group’s products are pooled in the cloud-based software EQS COCKPIT. They ensure the professional control of compliance workflows in the fields of whistleblower protection and case management, policy management, insider list management and disclosure obligations. In addition, listed companies benefit from a global newswire, investor targeting and contact management, IR websites, digital reports and webcasts for efficient and secure investor communications.

EQS Group was founded in 2000 in Munich, Germany. Today the group employs more than 400 professionals and has offices in the world’s key financial markets.