ADGM Enhances Whistleblower Protections with New 2024 Regulations

Abu Dhabi Global Market (“ADGM”) recently enacted two new regulations that aim to enhance the protection of whistleblowers in the financial sector and other industries. The Employment Regulations (Amendment No. 1) 2024 and the Whistleblower Protection Regulations 2024 came into force on 5 July 2024 and apply within the ADGM jurisdiction.

The Employment Regulations (Amendment No. 1) 2024 introduces a new Part 10 on Protected Disclosures, aligning it with the Whistleblower Protection Regulations 2024. Employees who disclose information in good faith about legal contraventions or financial crimes by their employers or related parties are protected from retaliation, civil or contractual liability, and enforcement of remedies against them. Retaliation includes dismissal, forced retirement or resignation, unequal terms of employment, and any act likely to cause detriment or disadvantage to the employee. Employees who suffer retaliation can seek a court declaration and order for compensation and corrective actions. Employers who fail to comply with court orders may face fines and other legal sanctions.

Protected disclosures relate to knowledge or a reasonable suspicion that an ADGM entity or employee (i) has, may have or is likely to  engage in money laundering, fraud or any other financial crime; or (ii) contravene any law applicable in or to the ADGM.

Employers within the ADGM are required to implement the following by 31 May 2025:

• facilitate persons to make protected disclosures;
• assess and, where appropriate, escalate concerns arising from information received through a protected disclosure;
• protect the identity of a person who makes a protected disclosure.

The Whistleblower Protection Regulations 2024 requires certain Global Market Establishments to implement arrangements for handling Protected Disclosures, including written policies and procedures, and record-keeping for at least six years. These establishments include Authorised Persons, Recognised Bodies, Designated Non-Financial Businesses or Professions, DLT Foundations, and Large Establishments, which are defined by a turnover or asset control of more than 13.5 million US dollars and more than 35 employees. The regulations also grant the Registrar of the ADGM the power to issue censures, impose financial penalties, or suspend or withdraw licenses for contraventions of the regulations.

Records in relation to protected disclosures must be maintained for at least six years from the date on which all matters relevant to the protected disclosure are completed and closed.

Global Market Establishments and their employees should familiarise themselves with the new regulations and ensure compliance with their obligations and rights.