Financial Crime World

Whistleblower Protection Laws Take Effect in British Virgin Islands

Introduction

January 27, 2024 - The long-awaited Whistleblower Act, 2021 has come into force in the British Virgin Islands, providing vital protections to individuals who report misconduct or wrongdoing.

What is the Whistleblower Act?

The Act aims to prevent and deter impropriety within organizations, while also ensuring that whistleblowers are not subjected to retaliation. Any individual can blow the whistle on another person or institution, including their employer or fellow employee.

Definitions

A disclosure of impropriety is defined as information that reveals:

  • A crime
  • Non-criminal breach of law
  • Miscarriage of justice
  • Waste of public resources
  • Environmental degradation
  • Threat to an individual’s health or safety

Eligibility for Protection

To be eligible for protection, whistleblowers must:

  • Make the disclosure in good faith
  • Have reasonable cause to believe that the information disclosed is substantially true
  • Report their concerns to specific individuals or institutions, such as:
    • The Governor
    • Premier
    • Attorney General
    • Commissioner of Police
    • A member of the House of Assembly

Procedures for Blowing the Whistle

The Act sets out procedures for blowing the whistle, including consideration for whistleblowers who may be:

  • Illiterate
  • Have a disability

It also emphasizes the importance of confidentiality and imposes severe penalties on anyone breaching this principle.

Financial Incentives

Whistleblowers are entitled to financial incentives through the new Whistleblower Reward Fund, which is made up of voluntary contributions and other allocated funds. The amounts rewarded will depend on the outcome of the investigation and may include a percentage of the monies recovered or an amount determined by the Governor, after consultation with Cabinet.

Responsibilities for Businesses

Businesses in the British Virgin Islands are advised to:

  • Familiarize themselves with the new Act
  • Review their internal whistleblowing policies to ensure compliance
  • Take steps to prevent victimization of employees who report misconduct
  • Have procedures in place for escalating and investigating concerns

Assistance and Contact Information

For further information on the Whistleblower Act, 2021 or assistance in reviewing or preparing a Whistleblowing Policy, please contact [insert contact details].