Whistleblowing in ADGM: A Review of the 2024 Protection Regulations

The Riffle

The Abu Dhabi Global Market (ADGM) Whistleblower Protection Regulations 2024, effective from 5 July 2024, introduce a comprehensive legal framework designed to encourage the reporting of misconduct while safeguarding whistleblowers. This initiative aligns with ADGM’s goal to cultivate a transparent, fair, and accountable financial ecosystem by granting legal protections to individuals making “Protected Disclosures” in good faith regarding financial crimes or regulatory breaches.

Key Highlights

• Protected Disclosure Definition: Information disclosed in good faith, relating to suspected contraventions of laws or financial misconduct by ADGM entities, qualifies for protection. Disclosures can be made anonymously and do not require prior internal reporting.

• Whistleblower Protections:

  • No Civil or Contractual Liability for disclosures made in good faith.

  • Protection from Retaliation, such as dismissal or harassment.

  • Right to Seek Relief if subjected to detrimental action.

  • Anonymity Permitted, though with practical trade-offs.

• Entity Obligations:

  • By 31 May 2025, Global Market Establishments must implement whistleblowing arrangements proportionate to their business size and complexity.

  • Certain entities (e.g., DNFBPs, Authorised Persons, DLT Foundations, and Large Establishments) must formalize these in written policies.

  • Maintain records of disclosures and investigations for six years.

• Regulatory Oversight:

  • The Registrar can penalize or censure non-compliant entities, adhering to principles of natural justice.

• Cultural Emphasis: A compliant whistleblowing framework is insufficient without an internal culture that genuinely supports transparency and whistleblowers.

Next Steps

1. Gap Analysis: Entities must evaluate existing mechanisms and align them with the new regulations.

2. Develop and Document Policies: Particularly for Relevant Categories, ensuring they meet content expectations outlined in the Guidance.

3. Set Up/Enhance Reporting Channels: Clearly communicate internal and external channels to staff.

4. Staff Training: Especially for leadership and HR, to handle disclosures appropriately and promote a speak-up culture.

5. Review Related Policies: Update codes of conduct, anti-money laundering processes, and grievance procedures to reflect the new regime.

6. Plan for Anonymity: Design systems that preserve confidentiality while allowing investigation and feedback mechanisms.

The ADGM Whistleblower Protection Regulations 2024 mark a pivotal step in fostering an open and secure environment for reporting misconduct. The regulations mandate robust protections for whistleblowers and impose specific obligations on ADGM-registered entities. Beyond compliance, success hinges on building a culture of trust, fairness, and integrity where employees feel safe and empowered to speak up. Proactive preparation before the May 2025 deadline will be essential to embed these values effectively.

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