The Abu Dhabi Global Market ("ADGM") has introduced the Whistleblower Protection Regulations 2024 ("Regulations"), marking a significant step forward in reinforcing a culture of transparency and accountability within the ADGM. Here’s an overview of the key points and actions for your business.
Overview of ADGM's New Whistleblowing Framework
Effective Date: The Regulations are in effect from the date of publication. ADGM entities are not required to comply with certain aspects, as mentioned in the Regulations, until 31 May 2025.
Scope of Protection: Individuals making good faith disclosures related to potential legal contraventions, financial crimes, or similar concerns within the ADGM entities are entitled to protection. This includes protection against civil or contractual liability, employment termination, or any form of detriment due to the disclosure.
Disclosure Channels: Disclosures can be made to designated persons within the entities, regulatory bodies, or law enforcement agencies, ensuring a wide range of options for whistleblowers to report their concerns.
Obligations for Entities: ADGM entities are required to implement effective arrangements for facilitating, assessing, and escalating protected disclosures. This includes maintaining confidentiality and protecting the identity of the whistleblower.
Sanctions for Non-compliance: The Registrar may impose sanctions, including financial penalties, public censure, or suspension/withdrawal of the commercial license for entities that fail to comply with the Regulations.
Action Required: ADGM entities must review and update their policies and procedures to comply with the new Regulations. This includes setting up robust systems for handling protected disclosures and ensuring employees are aware of their rights and protections under these Regulations.
These Regulations represent a crucial development in the ADGM’s regulatory framework, promoting a safer and more secure business environment. It’s imperative for businesses operating within the ADGM to take immediate steps to align their practices with these new requirements.
Next steps
To delve deeper into these Regulations and their relevance to your ADGM business, please reach out to the Fintech and Financial Services Team.
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