KKC Founding Partner Contributes to 4th Roundtable Shaping Whistleblower Law in Mexico

In April, KKC founding partner Stephen M. Kohn participated in the 4th Roundtable Meeting on “Combating Corruption through Whistleblowers” in Mexico where he outlined the basics of effective whistleblower reward laws and detailed the transformative effect they can have in fighting corruption.

Key Takeaways

• Leading experts gathered in Mexico to discuss how whistleblowers can aid in the country’s efforts to combat corruption
• KKC founding partner Stephen M. Kohn highlighted the success of U.S. whistleblower award laws, calling them “the best protections ever devised” for whistleblowers
• Some Mexican advocates expressed a hope to someday have whistleblower award programs modeled off those found in United States
• Until Mexico develops its own robust whistleblower award programs, Kohn believes it is critical that anti-corruption advocates promote the U.S. programs under which Mexican whistleblowers can qualify for awards

The 4th Roundtable Meeting on “Combating Corruption through Whistleblowers”

This April, Stephen M. Kohn, founding partner of Kohn, Kohn & Colapinto, LLP and Chairman of the Board of the National Whistleblower Center, participated in the 4th Roundtable Meeting on “Combating Corruption through Whistleblowers.” The roundtable was organized by the Citizen Participation Committee from the National Anti-Corruption System and the Bureau of International Narcotics and Law Enforcement Affairs (INL), which is part of the U.S. Embassy in Mexico.

The Success of U.S. Whistleblower Award Laws

Kohn, a renowned expert in whistleblower law, played a pivotal role in the roundtable. He shared his deep understanding of the basics of an effective whistleblower reward law and provided an overview of the United States’ transnational whistleblower laws, including the Foreign Corrupt Practices Act (FCPA), Anti-Money Laundering (AML) Whistleblower Improvement Act, and Dodd-Frank whistleblower programs administered by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).

Kohn called these laws “the best protections ever devised” for whistleblowers because they provide whistleblowers with the right to anonymity and 10-30% of the sanctions collected as a monetary reward if their tip results in successful enforcement action. The reward mechanism creates a financial safety net, flipping the risk dynamic of blowing the whistle and incentivizing whistleblowers to come forward with valuable information.

Improving Mexico’s Whistleblower Laws

Vania Pérez, Counselor at the Citizen Participation Committee National Anti-Corruption System, expressed a strong desire for Mexico to adopt an incentive and reward program similar to the United States. This system, which Kohn called “the best protections ever devised” for whistleblowers, could significantly enhance whistleblower protections in Mexico. Perez stated “one of our great aspirations would be to have the incentive and reward system that the United States has.”

Pérez acknowledged, though, that Mexico is at the very beginning of what could potentially be a decades-long process in aligning its whistleblower laws with best-practices. Other experts at the roundtable, including those from the United States, Spain, and Italy, suggested that a rewards system may not be feasible in Mexico at this time, particularly in the public sector.

However, new legislation creating a more robust reporting process and substantive anti-retaliation protections for whistleblowers in Mexico is likely on the horizon. INL and the Citizens Participation Committee have been collaborating closely with policy-makers and hope to get a bill soon after the elections. The two leading presidential candidates have both signaled support for strengthening whistleblower protections.

Using U.S. Whistleblower Laws to Fight Corruption in Mexico

Kohn explained “In the interim, while [Mexico] is waiting, it is incumbent upon human rights defenders and every person opposing corruption to spread the word about the US programs.” Because of the geographic proximity between Mexico and the United States, the U.S. has already prosecuted hundreds of cases involving foreign bribery, money laundering, and fraud in Mexico. In addition to the possibility of Mexican whistleblowers receiving a reward, the Mexican government can receive part of the monetary sanction if they cooperate with the investigation under the Mutual Assistance provisions.

To learn more about how to report corruption using transnational whistleblower laws, check out https://kkc.com/whistleblower-services/.