In the Headlines
August 10, 2010

New financial rewards for whistleblowers

World Radio Switzerland
Foreign Corrupt Practices Act Team Leader Don Zarin was quoted on a World Radio Switzerland segment titled, "New financial rewards for whistleblowers."

The segment reports that the Securities and Exchange Commission says it’s expecting a major increase in the number of insider informants coming forward with tip-offs about serious financial fraud. Swiss companies with investment, advisory and brokerage operations in the United States could be investigated, as could foreign subsidiaries of U.S. listed firms. Successful whistleblowers could earn millions of dollars in rewards, after new rules were voted through Congress as part of the overhaul of financial regulation. "I think it's a very significant change in the law that will significantly raise the bar of potential enforcement actions and potential exposure by both U.S. companies who are public companies and by foreign companies who are listed on the U.S. stock exchanges and therefore subject to the SEC jurisdiction," said Mr. Zarin. All of this obliges companies with branches or roots in the United States to carefully consider their compliance or risk having one their employees do it for them.

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