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U.S. Whistleblower Programs Send Clear Signal To Financial Wrongdoers!

SEC Whistleblower Program
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The U.S. Attorney’s Office for the Southern District of New York (SDNY) unveiled its Whistleblower Pilot Program on January 10, 2024, a strategic effort to fight financial crimes and political corruption by incentivizing individuals to disclose criminal conduct voluntarily. The program includes the possibility of a non-prosecution agreement (NPA) without the traditional requirement to plead guilty in cooperation agreements. Whistleblowing is actually booming!

Key Features of the Whistleblower Pilot Program

The SDNY Whistleblower Pilot Program is specifically tailored for individuals ready to report information concerning financial crimes and political corruption. To qualify for an NPA, whistleblowers must meet several criteria:

  • Their information must be previously unknown to the SDNY.
  • They must be willing to fully cooperate with the investigation and prosecution efforts, providing substantial assistance.
  • They cannot hold significant public or private positions, such as elected or appointed government officials, law enforcement agents, or top executives in major companies.
  • They must not have any prior felony convictions, especially those involving fraud or dishonesty.

The SDNY retains the discretion to offer NPAs even if a whistleblower does not meet all these conditions, recognizing the nuanced and complex nature of such disclosures.

The SDNY’s program reflects the broader worldwide trend of enhancing whistleblower policies. U.S. agencies such as the Securities and Exchange Commission (SEC), the Financial Crimes Enforcement Network (FinCEN), and the Commodities Futures Trading Commission (CFTC) have been actively promoting whistleblower initiatives. These include significant financial incentives and robust anti-retaliation protections for individuals who come forward with critical information.

Dangerous Times For Companies

For companies, this initiative signals the importance of maintaining robust internal reporting mechanisms and fostering a culture that encourages employees to report misconduct internally. Recent surveys indicate a shift in employee behavior, with a decrease in the likelihood of reporting issues to management and an increase in direct reporting to authorities or via social media.

Report Financial Wrongdoing

FinTelegram has implemented the whistleblower network Whistle42 together with partners since 2021. You can report information about financial wrongdoing or financial crime to us anonymously via Whistle42.

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