Ethics and governance in the European Financial centers

A whistleblower is an employee, former employee, or member of an organization who reports misconduct to people or entities that have the power to take corrective action. Generally the misconduct is a violation of law, rule, regulation and/or a direct threat to public interest: fraud, health, safety violations, and corruption are just a few examples.

Whistleblowing is based on internal information that is communicated and therefore is clearly a breach of the loyalty.

The use of official and public information to raise risks is not whistleblowing as everyone with public-spiriteness may have legally access and state comments on such information that is the visible part of the iceberg. This is the reason why inaction is not acceptable and decision-makers that do not take corrective action should be dismissed.

The procedure, that is not in the European culture, is required for companies that must comply with the Section 301 (4) of the Sarbanes-Oxley Act on corporate governance i.e. companies that require their financial records and statements to be certified by the US stock exchange.

See the Opinion 1/2006 on the application of EU data protection rules to internal whistleblowing schemes in the fields of accounting, internal accounting controls, auditing matters, fight against bribery, banking and financial crime (European source)

The IBA (International Bar Association) has an International Anti-Money Laundering Forum. This is an internet-based network assisting lawyers in dealing with their current responsibilities in connection with new anti-money laundering legislation.
It has launched an online forum for users of this website to discuss the practicalities of complying with new anti-money laundering legislation around the world.
The information relating to countries is up to date.
Go to the website

Money laundering and terrorist financing: Commission adopts 'level 2' implementing measures to Third Directive. The European Commission has adopted last week (3 August) technical measures implementing the Third Directive on the prevention of money laundering and terrorist financing. The Directive was adopted in October 2005 (IP/05/682) and is to be implemented at the latest in December 2007. These technical measures were previously endorsed under the comitology procedure by the Committee for the Prevention of Money Laundering and Terrorist Financing (IP/06/605) - a regulatory committee composed of Member States and chaired by the European Commission - and by the European Parliament. The measures are based on extensive stakeholder consultation and address the following:
(a) a definition of what should be understood by the term 'Politically Exposed Person';
(b) technical criteria allowing the extension of situations in which the procedures for customer due diligence may be simplified; and
(c) technical criteria allowing Member States to exclude from the scope of the application of the Directive those persons/entities conducting financial activities on an occasional or very limited basis.

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