Bradley Elliot
Regulated institutions worldwide recognise that Anti-Money Laundering (AML) isn’t just a matter of regulatory compliance. It is also a cornerstone of their commitment to acting as responsible, ethical organisations. Technology and processes play an integral role in weeding out suspicious transactions and bad actors, but it’s often an alert, principled human who calls attention to nefarious activities.
In many cases, whistleblowers within a team or company are the ones who step forward with contextualized evidence of financial crime. Yet their bravery in alerting their manager or the authorities to potential wrongdoing can come at enormous personal cost, especially in cultures where ‘snitching’ is seen as a betrayal of their peers.
In extreme cases, they may fear that coworkers or bosses may harass them and even force their dismissal, demotion, suspension, or transfer to a new job. As the headlines show, some whistleblowers risk their lives and families when they do the right thing.
They must be safeguarded for stepping forward, which involves countries stepping up their commitments to offer that protection. The good news is that whistleblowers have the right to disclose anything they consider fraudulent, keep their identities and information strictly confidential, have a fair hearing, and defend themselves against retaliation, unfair dismissals, and maltreatment.
Are legalities enough?
While most jurisdictions, including South Africa, guarantee constitutional rights such as freedom of speech and fair labour practices, more must be done to protect whistleblowers. The picture is muddied by the differing legal frameworks around the world. Anti-corruption groups and the Organisation for Economic Co-operation and Development (OECD) hold standards that are partially followed or not at all.
In some parts of Asia and Africa, existing laws need to adhere to OECD requirements. Even after the US 2022 AMLA Improvement Act, banking employees still need complete retaliation protection. While European Union member firms have to offer confidential reporting systems for whistleblowers, eight countries that failed to comply in 2023 were referred to the Court of Justice for the European Union.
The potential remedies
Regulators and lawmakers should thus cooperate in defining what qualifies as suspicious action. Coming forward in any country should be confidential, less complex, and encouraged as a good deed. Everyone wants to feel heard—that their claims are taken seriously and followed up—and a more widespread ethical culture around safe disclosure to employers can address this need.
Maintaining anonymity hinges on technology. Throughout investigations, whistleblowers should be able to use anonymous hotlines or online portals to securely upload messages or documents with full encryption (some services include GlobaLeaks and SecureDrop). Building trust may start with an organisation’s procedures and the technologies they have in place.
Still, greater whistleblowing protection is an umbrella effort at all levels of society, from individual cultural shifts to the work of governmental bodies with support from whistleblower protection companies, civil society groups and legal representatives. There’s work to do to understand and foster a supportive environment that guarantees trust and anonymity.
At the same time, advanced reporting channels and standardised global processes will rely on uptake worldwide. This can help prevent bad actors and heinous behaviours from harming the public. Better steps to shape a more secure way to report crime should lock down a safer financial world for all.
For more information about whistleblower rights, consult your employer’s guidelines or a reputable civil society organisation (such as the SAHRC)
Bradley Elliot is CEO at RelyComply. He writes in his personal capacity.
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