Financial Crime World

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Belgium Strengthens Whistleblower Protection in Finance

Brussels - In an effort to boost transparency and accountability, Belgium has introduced new legislation aimed at protecting whistleblowers who report breaches of national or Union law within legal entities in the private sector.

Introduction

The Act of 28 November 2022 on the protection of persons who report breaches of national or Union law within legal entities in the private sector, also known as the Whistleblower Act, came into effect on February 15, 2023. This new legislation aims to create a safe and effective reporting mechanism for employees and third parties who uncover wrongdoing within companies.

Key Provisions

Under the new law, legal entities with 50 or more employees must:

  • Establish internal reporting channels and procedures for reporting breaches
  • Accept and follow up on anonymous reports
  • Cover a wide range of individuals and entities, including:
    • Employees
    • Self-employed individuals
    • Shareholders
    • Members of the administrative, management, or supervisory body of a company
    • Facilitators and third parties who are connected to whistleblowers

The Whistleblower Act sets out specific obligations for legal entities, including:

  • Establishing reporting channels and procedures
  • Accepting anonymous reports
  • Publicly disclosing the existence and functioning of the reporting mechanism

Failure to comply with these provisions can result in severe penalties, including:

  • Imprisonment sentences ranging from six months to three years
  • Administrative fines ranging from EUR 2,400 to EUR 24,000

Conclusion

The Whistleblower Act is a significant step forward for whistleblower protection in Belgium, providing a safe and effective mechanism for reporting wrongdoing and ensuring that those who come forward are protected from retaliation.