Canada is the top source of foreign whistleblowers under the U.S. Securities and Exchange Commission’s (SEC) program that rewards individuals who alert the regulator to violations that lead to substantial recoveries with a portion of the money it recovers.
The Washington, DC-based National Whistleblower Center (NWC) released a new report Monday endorsing whistleblower reward laws, and calling on governments and regulators around the world to enact similar laws.
The report says that, since 2011, over 1,000 whistleblowers from 82 countries have made confidential disclosures to U.S. authorities under the U.S. whistleblower reward laws.
“The U.S. reward programs are filling the void caused by a lack of international whistleblower protections. Until other countries enact effective laws, whistleblowers around the world will continue to face harsh retaliation,” said Stephen Kohn, executive director of the NWC. “It is troubling that whistleblowers have to come to the United States for protection, while their home countries have ignored their plight, or participated in the retaliation.”
The report notes that Canada has been the top source of foreign whistleblower claims since 2011, with 167 reward claims made to the SEC. The UK ranks second with 149 claims, followed by China at 121 and India with 120 claims.
The NWC also calls upon organizations that work to fight corruption to sponsor training for potential informants who may qualify under U.S. reward laws. And, it recommends that international institutions, such as the European Union, the World Bank, the IMF, and the UN, enact whistleblower reward programs to promote the prosecution of financial fraud under their jurisdiction.
In Canada, the Ontario Securities Commission (OSC) has been considering the introduction of a whistleblower program, and is expected to publish a consultation paper on the idea in the next month or so.
“All whistleblower reward laws must ensure the anonymity and privacy of whistleblowers, establish minimum standards for rewards for whistleblowers to be calculated as a percentage of total recovery, and provide for due process, including the right to judicial review for claims of wrongful denial of awards,” the NWC report recommends.