The Financial Supervisory Service (FSS) has developed measures to promote “compliance reporting,” replacing the term “whistleblowing,” which carries negative connotations. This change aims to encourage reporting by expanding the scope of reporters to include former employees and external individuals. The target of the reports has also been broadened to encompass all employees regardless of rank, not just supervisors.
To strengthen the protection of compliance reporters, the FSS is introducing various channels to guarantee anonymity, such as channels operated by independent companies and mobile-based anonymous reporting systems. Confidentiality obligations will be expanded to include handling expenses like rewards, separating the reporter and the reported in personnel decisions, and ensuring the reporter’s identity isn’t exposed during the reporting process.
The policy also stipulates that even if a compliance reporter was involved in the wrongful act, they may receive reduced or exempted disciplinary actions if they report the activity. Additionally, a new compensation system will cover expenses like relocation costs and legal fees requested by the reporter, with reward amounts determined as a fixed percentage of the loss incurred.
The FSS plans to regularly review and improve the operation of the compliance reporting system in banks to ensure its smooth implementation, integrating compliance management into the responsibilities of executives such as CEOs.