On July 21, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, instituting significant financial industry reforms. Of particular importance is Section 922, which amends the Securities Exchange Act, establishing a new whistleblower incentive program that provides monetary rewards to those individuals who report securities violations leading to the successful recovery of sanctions exceeding $1 million in criminal and civil proceedings. The Dodd-Frank whistleblower provision applies the 10-30 percent incentive of the Foreign Corrupt Practices Act, awarding a whistleblower 10 to 30 percent of the money collected based on the quality of original information furnished – as determined by the SEC .

In addition, Section 922 also establishes various protections for whistleblowers, including restrictions on discharging, demoting, suspending, threatening, harassing or discriminating against an employee for providing information to the SEC or assisting in an investigation.

With increased monetary motivation and expanded protection in place, Dodd-Frank will likely spur whistleblower reporting. As a result, it is imperative that a company establish and implement a thorough FCPA compliance program. These programs assist in deterring FCPA violations and may mitigate penalties in the case of a violation.  When a whistleblower allegation is made, a company and its legal representation must conduct an independent internal investigation as quickly and accurately as possible to determine the overall scope of the allegations and level of misconduct committed.

Grant Thornton’s Forensic Accounting, Fraud and Investigation Services can assist your company in establishing a robust FCPA compliance program comprised of industry best practices or assessing the effectiveness of your company’s existing FCPA compliance program.  We can also help your company respond to whistleblower allegations swiftly and strategically, utilizing established forensic accounting and investigation techniques to gather, analyze and interpret financial evidence – including interview techniques, computer forensics, data analysis, records research and background searches. In addition, we have also developed a proprietary Model Accounting Complaint Handling (MACH^SM) to enhance the effectiveness and accountability of corporate whistleblower claim systems. The prevention of fraud and corruption is critical in helping an organization to mitigate the potential fines and penalties associated with FCPA violations. This is especially true when performing due diligence prior to a merger or acquisition.  We can assist your organization in identifying the red flags of corruption before t becomes a liability for your organization.

Having worked with public, private, governmental and non-profit enterprises to conduct whistleblower investigations, Grant Thornton’s experience in this area includes massive reconstructions of accounts, restatements of publicly filed financial reports, enforcement activities and expert testimony. We have also helped management, boards of directors and special committees to develop corporate responses, financial reporting and remedial action plans. 

We believe the investigation of whistleblower allegations requires the expertise of skilled fraud and forensic professionals. Our team includes a unique combination of Certified Public Accountant (CPA) auditors and tax professionals, Certified Fraud Examiners (CFE), Certified Anti-Money Laundering Specialists (CAMS), certified electronic data discovery technologists, and high-tech computer and research tools, affording Grant Thornton the unmatched capability to successfully perform the most complex assignments.

Furthermore, as the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations, Grant Thornton LLP garners more than 30,000 partners and professionals in over 100 countries to provide highest quality service and personalized professional attention worldwide.