How does the new Russian Localisation Law affect corporate whistleblowing in Russia?

The new Russian Federal Law, the Localization Law that came into force in September has significant implications on the set up for whistleblowing services in Russia.

The law implies that processing of personal data belonging to Russian citizens should be carried out in Russia, and further that Russian authorities have the right to request data. Even if a company with a Russian subsidiary communicates the possibility to blow the whistle only on the group site outside Russia and the employees of the Russian subsidiary have a possibility to access the service, personal data related to Russian citizens should be stored in Russia.

Check list for companies with whistleblowing services in Russia:
1. Where is data stored today?
2. Which are the risks of storing whistleblowing data in Russia?
3. Which are the alternatives to provide a means for following up on business ethics that are in line with the new federal law?

”We are looking into the possibilities of providing safe ways for following up on the business Code of Conduct also in Russia. This is important in order to maintain the trust in our customers´operations.”, says Karin Henriksson, Founding Partner of WhistleB.

Whistleblowing is an efficient way to minimize risks and to strengthen the corporate compliance work. According to the Association of Fraud Examiners over 40% of internal frauds were detected through whistleblowing tips.

WhistleB offers a next generation whistleblowing service based on high data security, user-friendliness and legal support.
For more information on whistleblowing in Russia, please contact us on: info@whistleb.com or visit www.whistleb.com

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