Page 90 - U.S. FOREIGN CORRUPT PRACTICES ACT

A Resource Guide to the U.S. Foreign Corrupt Practices Act. Second Edition.

Chapter 8

Whistleblower
Provisions and
Protections

WHISTLEBLOWER PROVISIONS

AND PROTECTIONS

Assistance and information from a whistleblower who knows of possible securities law

violations can be among the most powerful weapons in the law enforcement arsenal.
Through their knowledge of the circumstances and individuals involved, whistleblowers

can help SEC and DOJ identify potential violations much earlier than might otherwise

have been possible, thus allowing SEC and DOJ to minimize the harm to investors, better

preserve the integrity of the U.S. capital markets, and more swiftly hold accountable those
responsible for unlawful conduct.

The Sarbanes-Oxley Act of 2002 and the Dodd- individuals who voluntarily come forward with
Frank Act of 2010 both contain provisions affecting high quality, original information that leads to

whistleblowers who report FCPA violations. enforcement actions in which over $1,000,000
Sarbanes-Oxley prohibits issuers from retaliating in sanctions is ordered. 417 The Commission
against whistleblowers and provides that issues awards in an aggregate amount equal
employees who are retaliated against for reporting to not less than 10 percent, and not more than
possible securities law violations may file a 30 percent, of monetary sanctions that have
complaint with the Department of Labor, for which been collected in the actions. The Dodd-Frank

they would be eligible to receive reinstatement, Act also prohibits employers from retaliating
back pay, and other compensation. 415 Sarbanes- against whistleblowers and creates a private
Oxley also prohibits retaliation against employee right of action for employees who are retaliated
whistleblowers under the obstruction of justice against. 418
statute. 416 Furthermore, businesses should be aware

In 2010, the Dodd-Frank Act added Section that retaliation against a whistleblower may also
21F to the Exchange Act, addressing whistleblower violate state, local, and foreign laws that provide
incentives and protections. Section 21F authorizes protection of whistleblowers.
SEC to provide monetary awards to eligible

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