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      A well-structured whistleblowing channel supports business operations

      As a rule, private and public sector organizations with at least 50 employees are obligated to establish an internal reporting channel. The national Whistleblower Protection Act, which came into effect on January 1, 2023, implements the European Union Whistleblower Protection Directive and guides the interpretation of national law.

      • A secure channel for reporting suspected misconduct

        The Whistleblower Protection Act enforces the EU directive known as the whistleblower or whistleblowing directive, which aims to ensure that individuals who observe or suspect misconduct in the course of their work can report it safely and are protected by their employer at no cost to themselves.

      • A compliant process and reporting channel give the employer a strategic advantage in handling suspected misconduct

        For employers, the cost of implementing a compliant process and reporting channel is justified, as it is the only way to gain priority in addressing suspected misconduct. This allows the employer to intervene and resolve issues before they reach authorities or the public. In European case law, compensation equivalent of up to five (5) years’ salary has been awarded to whistleblowers who were later dismissed – without proof of direct damage (in accordance with the directive) – even though national labor laws typically cap compensation for unlawful dismissal at two (2) years’ salary.

      • A well-structured reporting channel supports ethical conduct

        A properly designed reporting channel not only meets legal requirements but also promotes ethical behavior and helps detect early signals of activities that may threaten business operations. We assist in organizing your organization’s functions and processes to comply with the Whistleblower Protection Act. Our solution adapts to the needs of both private and public sector organizations. In addition to advising organizations, our team also teaches whistleblower and compliance themes at the Faculty of Law at the University of Helsinki.


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      Our whistleblowing service

      We provide a whistleblowing channel service that complies with the requirements of the Whistleblowing Directive, either as a fully outsourced solution or tailored to your specific needs. We also assist in identifying the key areas for development in relation to the directive. If your organization already has a whistleblowing channel in place, we can help update it to meet the directive’s requirements.

      Benefits of a professionally managed outsourced whistleblower channel

      With our service model, you can build a reliable, responsible, and credible whistleblowing channel, both internally and externally, where the handling, investigation, and decision-making of reports are secured.

      In accordance with the directive, we offer:

      • Investigations of misconduct
      • Management of data protection and information security issues
      • Engagement of management and key personnel
      • Creation of necessary processes and definition of responsibilities
      • Communication with stakeholders

      Our service also includes:

      • Expertise in internal auditing
      • Expertise in legal matters and responsible business models

      Through the reporting system, your organization can gain access to financially significant information that might otherwise go unnoticed or receive early warnings about business-threatening risks.

      Our Gap Analysis tool ensures that the review of operations is conducted systematically and efficiently, revealing the most critical areas for improvement in your organization.

      If your organization already has a whistleblowing channel, we can help verify it and, if needed, update it to comply with applicable laws. The following aspects will checked: 

      • Whistleblowing channels are subject to strict technical and administrative requirements.
      • Suspicions received through the channel must be investigated appropriately, and the investigation, decision-making, and the entire process must be documented.

       

      The law requires an independent and impartial investigation. However, organizing this internally is not always feasible in an efficient organization. Investigations involve legal risks, where the potential consequences may be significantly greater than the suspected misconduct itself. Investigative and legal expertise and experience enable smooth and appropriate investigation and documentation. The employer must retain the investigation documentation for potential official investigations.



      Meet the team

      Timo Piiroinen

      Forensic

      KPMG in Finland

      Antti Aalto

      Legal Counsel, Legal Compliance

      KPMG in Finland