Financial Crime World

Belgian Law on Whistleblower Protection Enters into Force

Offering Broader Scope and Enhanced Protections for Financial Crime Informants

After missing its December 2021 deadline, the Belgian government has finally implemented a comprehensive law aimed at protecting whistleblowers who report financial crimes and other regulatory breaches. The new law, effective from February 15th, introduces a framework that builds upon existing rules to provide enhanced protections for individuals who report wrongdoing within private sector companies.

Key Features of the New Law

  • Broader Scope: The law covers not only breaches of regulations in ten identified areas but also tax fraud and social fraud.
  • Anonymous Reports: Legal entities with at least 250 employees are required to accept anonymous reports, while those with between 50 and 249 employees have until December 2023 to comply.

Requirements for Companies

  • Internal Reporting Channel: Companies with 50 or more employees must set up an internal reporting channel and follow-up procedure.
  • Clear Information: Companies must provide clear information on reporting channels and ensure the confidentiality and protection of whistleblowers.
  • Anonymous Reports: Those with at least 250 employees are also required to handle anonymous reports and may share resources for receiving reports and conducting investigations.

Applicability

The law applies to all private sector companies, regardless of their size or sector. Companies must consult with existing employee representative bodies when implementing the new reporting procedure.

Compliance Requirements for International Groups

Companies that are part of an international group must ensure that their whistleblowing policy complies with stricter local rules in each country, rather than relying on a central reporting procedure at group level.

Objectives and Implications

The law aims to provide a safe and secure environment for individuals who report financial crimes and other wrongdoing within companies, allowing them to speak up without fear of retaliation. Compliance experts warn that companies must adapt quickly to the new requirements, which include setting up internal reporting channels and providing clear information on how to report concerns.

Next Steps

For more information on how your organization can comply with the new law, please contact our team of experts at [insert contact details].