Interview with our Spanish Partner César Zarate, ECIJA

In our interview with César Zarate, Partner at ECIJA, we learn more about the impact of the EU Whistleblowing Directive 2019/1937 on whistleblower protection, and also about Spain’s existing Criminal Code, that already requires companies to have a crime prevention system. Our Partner tells us how implementing a whistleblowing channel can help organisations, and the main limitations for Spanish companies when it comes to implementing these systems and managing cases.

Tell us more about your firm

ECIJA is positioned in the top 10 national firms by turnover, consolidating itself as the Ibero-American law firm with the strongest presence in Latin America, reinforcing our full-service offer. We have a team of over 1000 professionals at 33 office locations in 16 countries. We are the undisputed authority on Digital Economy in Spain, and leaders in various areas of legal practice in Spain, Portugal and Latin America.

ECIJA has been recognised by the main international directories as a benchmark firm in various practice areas, standing out for excellence and innovation in the provision of legal services.  Thanks to our commitment to innovation, excellence and sustainability, the Financial Times has also recognised ECIJA as one of the most innovative firms in Europe.

In addition to our direct presence in Iberia and Latin America, ECIJA provides legal services globally through our strategic alliance with the Anglo-German firm Taylor Wessing.

What impact has the EU Whistleblowing Directive, and its adoption into national law, had on organisations in Spain?

As anticipated, 2023 has proven to be a pivotal year in the evolution of whistleblowing mechanisms within Spanish companies. The enactment of Law 2/2023, coupled with the expiration of compliance deadlines for companies with more than 250 and 50 employees in June and December, respectively, has significantly influenced the action plans of all corporate compliance systems.

Despite these developments, the absence of an established independent whistleblower protection authority has alleviated the pressure on certain companies that had not yet fully adapted their channels. These companies have strategically planned for the implementation of these changes in the current year.

It is noteworthy that the authority is slated to be established in 2024, with expectations leaning towards the first half of the year. This anticipation stems from the understanding that the Law grants the Council of Ministers a one-year period, expiring in March 2024, to approve by Royal Decree, the Statute of the Independent Integrity Authority (IIA). Optimistically, the relevant ministries are presumed to be actively engaged in drafting the Statute.

What are the most common reasons for your clients wishing to implement a whistleblowing system? 

Before the enactment of Law 2/2023, the most common reason to implement a management system was related to the prevention of crimes in accordance with the requirements of Article 31 bis of our Criminal Code. The transposition of the Fourth Directive on Money Laundering has also motivated the implementation of channels by the obligated subjects.

Now, the motive is largely to comply with local regulations in order to avoid sanctions.

What concerns do your clients have about implementing a reporting channel and how do you lessen these concerns?

In most cases, our clients are concerned that they do not have sufficient means for the correct handling of complaints. It is very rare for companies in Spain to have professionals specialised in the investigation of complaints who can ensure that the process is carried out while respecting the guarantees of all individuals involved.

In addition to compliance with local regulations, our clients primarily seek our service for external management of channels and handling of complaints, in a compliant and timely way.

What made you partner with Whistlelink?

We have been analysing complaints channel solutions for many years and Whistlelink’s look and feel caught our attention from the beginning. The system has a very clean and well-crafted aesthetic look which, from my point of view, helps to generate greater trust for the whistleblower.

Another strength is the usability for the manager and the ability to easily adapt the platform to the demands of our clients.

Of course, having the ISO 27001 certification and rigorously complying with the regulations on privacy and data protection was essential for us.

For more information about ECIJA, please visit ECIJA – Spain’s leading TMT law firm.

Would you like to learn more about a whistleblowing service and safe internal reporting channels? You can learn more about Whistlelink’s all-in-one solution here or book a free demo of our system!