INTRODUCTION Contributed by: Deepak Vij, ABV Solicitors
Under Articles 321a(1) and 321a(4) of the Code of Obligations (CO), employees owe a duty of loyalty and confidentiality to their employer, meaning they must generally report misconduct internally first. Only if internal reporting is exhausted and a public interest concern exists may an employee escalate to authori - ties, and disclosure to the media is permitted only as a last resort. Whistle-blowers who breach these obligations risk criminal prosecution – for example, under Articles 162 SCC (business secrecy) or 47 of the Banking Act (banking secrecy) as well as dismissal. While termination solely for lodging a complaint may constitute unfair dismissal, the remedy is limited to compensation of up to six months’ salary, with no right of reinstatement. Switzerland offers no financial incentives for whistle- blowers comparable to programmes in the United States. However, anonymous reporting mechanisms do exist. In 2015, the Swiss Federal Audit Office launched an anonymous electronic reporting platform allowing the public to report suspicions of corruption, or fraud with guaranteed anonymity. Private entities are not legally required to establish whistle-blowing systems, though doing so is consid - ered best practice and may be implicitly expected under corporate governance obligations. The OECD has repeatedly urged Switzerland to adopt stronger protections for private-sector whistle-blowers. Singapore In Singapore, protection for whistle-blowers is pro - vided through a combination of statutory provisions and regulatory guidance. Under Section 36 of the Prevention of Corruption Act, complaints made to the authorities cannot be admit - ted as evidence in civil or criminal proceedings, and no witness is required or permitted to disclose the identity of an informer. The Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act also imposes reporting obligations on persons who know or sus - pect that property is linked to criminal conduct. Good
faith disclosures to a Suspicious Transaction Report - ing Office (STRO) are protected from civil or criminal liability and do not constitute a breach of confidential - ity obligations. In addition, the Code of Corporate Governance encourages listed companies to implement whistle- blowing policies that allow employees to report con - cerns confidentially. While there is no general statutory guarantee of ano - nymity, reporting channels (including submissions to an STRO and reports to the Corrupt Practices Inves - tigation Bureau) are structured to protect the identity of informants in practice. Enforcing anti-money laundering laws The global need to prevent and detect money launder - ing is paramount. Financial criminals and fraudsters need to launder the proceeds of their crime. The UK has made this a top priority. In response to the threat of money laundering, ECCTA includes provi - sions relating to Companies House reform aimed at improving corporate transparency, as well as meas - ures concerning the seizure and recovery of crypto- assets, intelligence sharing, and proactive intelligence gathering by law enforcement agencies. Last year the government produced its proposals for improving the effectiveness of the UK Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). Other nations have all adopted a similar approach. In April 2024, the EU, in an effort to combat money laundering and terrorist financing provided Financial Intelligence Units (FIUs) with more powers to analyse and detect money laundering and suspend suspicious transactions. This includes enhanced due diligence measures and checks on customers’ identities. In addition, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism has been created to ensure that EU anti-money laundering rules are applied correctly and consistently.
13 CHAMBERS.COM
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