Internal Whistleblower Channel mandatory for SMEs

The Internal Whistleblower Channel or the Internal Reporting System, which will be mandatory for some companies in Spain, as established by the recently approved Law 2/2023, of February 20, regulating the protection of persons who report regulatory violations and the fight against corruption:

Which companies are obligated?

Some of the companies obliged to activate an Internal Whistleblower Channel in Spain are:

–Companieswith 50 or more employees.

–Companiesobliged to comply with the Money Laundering Prevention Law.

-Organizationsdealing with minors

-Insurance brokerswith public sector clients

–Entitiesobliged to implement an Equality Plan

–Companiesthat offer financial services, products and markets.

–Anypublic entity

-Business organizationsand their foundations whenever they receive or manage public funds.

-Political parties, trade unions and their foundations whenever they receive or manage public funds.

Background of the Channel or Internal Information Systems

As already published by Business Adpater® three years ago, (article Whistleblowing Channel) the Internal Company Reporting Systems or Internal Whistleblowing Channels, were already regulated by the European Directive 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law, better known as the Whistleblowing Directive.

Purpose of the Channel

An internal whistleblower channel is a means by which employees, suppliers, customers or other interested parties can anonymously or confidentially report any misconduct, administrative or criminal violations or irregularities that are taking place within the company.

By having an internal whistleblowing channel or system in place, companies can detect and address any potential irregularities or policy violations before they become major problems.

It establishes a set of minimum standards for the protection of whistleblowers who report wrongdoing within the EU. The provisions set out in the Act include measures to ensure the confidentiality of the identity of whistleblowers and to protect them from retaliation.

Likewise, the presumption of innocence of the accused, the right to defense, the right to confidentiality of their identity and the facts, among others, are required.

Benefits of outsourcing the Internal Whistleblowing Channel

Now the companies subject to this obligation will have to decide how to shape their Internal Complaints Channel and, as usual, the outsourcing of services to comply with the law will save time, money and responsibilities in the event of misapplication of the law, which, as in any other regulation, will result in a sanction for non-compliance.

Outsourcing the Internal Whistleblower Channel to an independent consulting firm will imply an objective management of the reported cases as well as a guarantee of confidentiality of the whistleblowers, the reported and the reported information. Therefore, a guarantee of compliance.

Business Adpter® , is the independent consultant to whom you can delegate your Internal Whistleblower Channel.is the independent consultant to whom you can delegate your Internal Whistleblower Channel, which guarantees strict compliance with current regulations, avoiding sanctions to the obligated companies. For more information write to info@businessadapter.es or request it in this form:

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