Whistleblower Protection in Financial Institutions: A Safety Valve for the Faroe Islands

In an effort to promote transparency and accountability, the Nordic Council of Ministers has introduced a whistleblower procedure aimed at protecting employees who report illegal activities or irregularities within financial institutions in the Faroe Islands.

Overview of the Procedure

The procedure, adopted by the Secretary General of the Nordic Council of Ministers, allows employees or partners of financial institutions to submit information about suspected illegalities or serious irregularities to an independent administrator. The whistleblower’s identity is treated confidentially and can be submitted via email to WB@norden.org.

Purpose of the Procedure

The purpose of the whistleblower procedure is to ensure that any information provided is used constructively for the improvement, prevention, and mitigation of errors and critical issues in financial activities. It is not designed to target individuals, but rather unacceptable conditions.

How it Works

The procedure supplements internal dialogue and openness within financial institutions and should only be used when regular channels have been exhausted. Before resorting to the whistleblower procedure, employees are encouraged to consider whether the issue can be resolved locally by contacting their immediate superior or employee representative.

• If an employee believes that a serious situation has arisen, they should submit information to the Whistleblower Administrator.
• The administrator will conduct an initial assessment of the reported information and may commence an internal investigation if deemed necessary.
• The administrator will update the whistleblower on the progress and outcome of the investigation, although updates may be limited due to confidentiality obligations or legal circumstances.

What Constitutes a Serious Situation

The whistleblower procedure deals with information about serious situations, including:

• Violations of laws and regulations
• Serious breaches of ethical standards
• Serious circumstances that could harm the organization or society

Employees who report information about such situations should describe all facts in as much detail as possible and provide any relevant documentation.

Protection for Whistleblowers

The Nordic Council of Ministers emphasizes the importance of protecting whistleblowers and promoting transparency within financial institutions in the Faroe Islands. “We encourage all employees to speak up if they witness any illegal activities or irregularities and to report them through our whistleblower procedure,” said the council’s Secretary General.

In summary, the whistleblower procedure aims to promote transparency and accountability by providing a safe and confidential channel for employees to report suspected illegal activities or irregularities within financial institutions in the Faroe Islands.