Spain: The Independent Authority for Whistleblower Protection is Regulated in Spain

On 30 October, Royal Decree 1101/2024 of 29 October, which approves the Statute of the Independent Authority for the Protection of Whistleblowers, A.A.I., came into force.

This is a significant step forward in the Spanish legal framework related to the protection of whistleblowers and the fight against corruption. The recent Royal Decree approves the Organic Statute of the Independent Whistleblower Protection Authority (A.A.I.), establishing a key body to guarantee integrity and transparency in public and private organisations.
Law 2/2023 of 20 February comes in compliance with Directive (EU) 2019/1937 of the European Parliament and of the Council, which establishes the need to protect those who report breaches of Union law. This law provides Spain with a comprehensive regulatory framework to effectively protect people who, from within organisations, report illegal activities that affect the general interest.

Creation of the Independent Authority for the Protection of Whistleblowers (A.A.I.)

The A.A.I. acts as a public law body with its own legal personality and full public and private capacity. It will act with full organic and functional autonomy and independence from the Government and from any public or private entity, ensuring that its work is not influenced by external interests.

Its main purpose is to ensure the protection of whistleblowers and to serve as an institutional pillar in the prevention and fight against fraud and corruption. Its functions include:

• Managing the external communications channel for receiving complaints.
• Adopting support and protection measures for whistleblowers.
• Acting as a consultative and advisory body to the government on whistleblower protection.
• Developing crime prevention models in the public sphere.
• Exercising sanctioning powers in cases of infractions.

Implications for Companies

The implementation of the A.A.I. has several implications for Companies:

• Mandatory Internal Whistleblowing Channels: Companies, or Company Groups, with more than 50 employees must establish secure and confidential internal channels to receive reports of possible infringements. This has been an obligation since march, 2023.
• Whistleblower protection: The obligation to protect whistleblowers is reinforced, avoiding reprisals and guaranteeing their confidentiality.
• Coordination with the A.A.I.: Companies must cooperate with the A.A.I. in case of investigations and may be subject to sanctions in case of non-compliance. It must be guaranteed that an employee can turn to the A.A.I., in addition to the Company’s internal complaints channel.

Therefore, at the organisational level of a company that falls under the umbrella of this law, the following is recommended:

• Review of Internal Protocols: It is crucial to review and, if necessary, update internal protocols and policies related to whistleblowing and whistleblower protection
• Training and Awareness Raising: Promote training programmes for employees on the new legal framework and the importance of ethics and transparency.
• Be prepared for the intervention of the A.A.I.: in the event that the A.A.I. activates an action protocol following a complaint from an Employee, the Company or Group of Companies must be prepared to collaborate and participate hand in hand with the Administrative Authority.

The creation of the A.A.I. represents a significant step in the promotion of transparency and integrity in Spain. It is, therefore, essential that Companies proactively adapt to this new regulatory environment to foster a corporate culture based on ethics and compliance.