SEC, UN to reinforce whistleblower protection policies

MANILA, Philippines — The Securities and Exchange Commission (SEC) seeks to reinforce whistleblower protection policies with the assistance of the United Nations Office of Drugs and Crime (UNODC).

The SEC said the partnership aims to strengthen whistleblower protection policies as a safeguard against corruption and unauthorized activities.

The corporate regulator sees whistleblower protection as vital in gathering evidence against corruption as well as illegal and unauthorized activities since witnesses to such activities often come from within the organization.

The commission said it is also crucial in preventing fraudulent activities as individuals are more likely to think twice before engaging in unethical or illegal behavior when they know that their actions can be exposed.

“Whistleblower protection mechanisms play a crucial role in our ongoing battle against corruption and in addressing illegal and unauthorized activities that violate the laws, rules and regulations overseen by the SEC,” SEC Enforcement and Investor Protection Department director Filbert Catalino Flores III said.

“These mechanisms are not only vital for safeguarding the brave individuals who report unethical practices but also for promoting transparency and accountability within both our corporate and governmental sectors,” he said.

With the aim of developing a comprehensive protection policy for whistleblowers, the SEC Anti-Money Laundering Division in partnership with the UNODC conducted a technical workshop early this month.

The collaboration likewise sought to improve the capabilities of SEC personnel in executing mechanisms to ensure the protection of whistleblowers.

The SEC and UNODC previously worked together to improve the disclosure of beneficial ownership data among corporations as well as its possible use in the public procurement process.

The SEC has since signed data sharing agreements with 20 government partners on beneficial ownership.

The commission also implemented SEC Memorandum Circular No. 10 in 2022, which revised the sanctions for non-compliance with beneficial ownership disclosure requirements.

According to the SEC, these form part of its efforts to promote beneficial ownership transparency and compliance in support of the country’s mission to exit the gray list of Paris-based Financial Action Task Force.