Financial Crime World

Whistleblower Protections for Financial Crimes on the Horizon in Lithuania

A new bill aimed at strengthening whistleblower protections is set to come into effect in Lithuania on December 17, 2021. The legislation transposes the EU directive and obliges companies with more than 50 employees to establish internal and external reporting channels for reporting internal misconduct.

What’s Covered?

The proposed law covers a wide range of infringements, including:

  • Breaches of procurement procedures
  • Internal fraud
  • Environmental violations
  • And more

Compliance Requirements

Private sector organizations with 50-249 employees will have until December 17, 2023, to comply with the new regulations. Larger firms must adhere to the new regulations sooner.

To meet these obligations, companies must:

  • Develop notification channels
  • Follow-up procedures
  • Measures to ensure whistleblower confidentiality and anonymity
  • Inform whistleblowers of the final outcome
  • Store notifications properly
  • Comply with personal data protection requirements

External Reporting Channels

In addition to internal reporting channels, whistleblowers will have the option to report breaches directly to an external authority. This ensures their safety in cases where internal reporting may be risky.

A designated competent authority independent from the organization must be established to receive and process external notifications.

Benefits of a Well-Functioning Whistleblower System

Experts claim that a well-functioning whistleblower system can:

  • Reduce financial damage caused by irregularities by 50%
  • Detect infringements six months earlier than without such a function

Expertise in Building Effective Whistleblowing Systems

Grant Thornton Baltic, a leading consulting firm, offers expertise in building effective whistleblowing systems, including:

  • Implementation
  • Staff training
  • Case management

The company also provides software for managing the reporting process and has specialists with extensive knowledge in areas such as:

  • Conflict of interest prevention
  • Money laundering detection
  • Bribery and corruption prevention
  • Fraud detection
  • Accounting irregularity prevention
  • Taxation
  • Employment law
  • Environmental issues
  • Forensic data analysis
  • And more.