ADGM new ‘whistleblowing’ framework to enhance market integrity

July 12, 2024 446

Entities within the centre are required to implement proportionate arrangements to support effective whistleblowing by May 31, 2025

The Abu Dhabi Global Market (ADGM), the international financial centre of the UAE’s capital, has unveiled its whistleblowing framework.

This initiative, developed in collaboration with ADGM Authorities, aims to enable increased transparency, accountability and market integrity within the financial centre.

The framework, part of the financial centre’s progressive business environment, aligns with its existing regulatory structures. It includes:

  • Dedicated regulations: These recognise and protect the good faith reporting of ‘protected disclosures’.
  • Reporting channels: Internal and external channels are available for reporting reasonably suspected breaches of the centre’s legislation or financial crime.
  • Anonymous reporting: Protection is provided for the anonymous reporting in good faith of reasonably suspected misconduct.
  • Non-retaliation protections: Integrated into existing employment regulations, these protections guard employees of all ADGM entities against retaliation for speaking up.
  • Good governance requirements: All entities in the financial centre must support whistleblowing through good governance practices.
  • Written policies and procedures: Required for firms licensed by the Financial Services Regulatory Authority, designated non-financial businesses or professions, and large entities within the financial centre.

ADGM entities are expected to comply by May 31 next year

The framework underscores the commitment of market participants to align with the highest global standards of business practice.

Entities within the centre are required to implement proportionate arrangements to support effective whistleblowing by May 31, 2025.

These arrangements must be documented for companies that exceed a certain size or carry additional financial crime risks.

The financial centre’s whistleblowing framework provides a robust foundation, continuously enhanced to uphold the highest international business standards.