Webinar Recap: Leveraging Transnational Whistleblower Laws to Fight Global Corruption

In our recent webinar, moderated by journalist and author Josy Joseph, we were joined by Stephen Kohn and Kayla Svihovec, leading attorneys in the field of whistleblower protection.

The discussion focused on the critical role of transnational laws in combating corruption, the untapped power of NGOs and journalists as whistleblowers, and the urgent need for global enforcement standards.

If you missed the live session, here are the essential takeaways from the discussion.

1. The Reach of U.S. Whistleblower Laws is Global

Stephen Kohn highlighted that we are at a turning point in anti-corruption efforts. While the United States has taken the lead with laws like the Foreign Corrupt Practices Act (FCPA) and Anti-Money Laundering (AML) acts, these laws are effectively transnational.

• Global Impact: Over the last decade, prosecutions covering bribery and money laundering have impacted approximately 80 different countries, resulting in $24 billion collected in sanctions.
• Non-U.S. Citizens Qualify: Crucially, a whistleblower does not need to be a U.S. citizen to file a claim. The violation can occur outside the U.S., and the company involved does not even need to be headquartered in the U.S..
• Success Stories: Kohn cited the Danske Bank money laundering scandal—where $240 billion was laundered from Russia to the West—as a prime example of a case tackled by a single whistleblower using these laws.

2. Journalists and NGOs Can Be “Analysts”

A major portion of the webinar was dedicated to the role of civil society. According to OECD studies, 40% of successful bribery cases originate from the news media or NGOs.

• The “Analyst” Provision: Under the Dodd-Frank Act, journalists and NGOs can qualify as whistleblowers not just as “insiders,” but as “analysts”. By providing original analysis of public information that leads to accountability, they can qualify for the same protections and compensation as traditional insiders.
• Funding Investigative Work: Attorney Kayla Svihovec noted that this framework can provide a vital monetary boost to investigative journalism outlets, helping them fund continued work in defense of democracy.

3. The “Voluntariness” Trap: Timing is Everything

One of the most critical practical lessons shared by Kayla Svihovec concerned the specific rules for filing a claim.

• The Rule: To qualify for an award, a whistleblower must be “voluntary,” meaning they must go to the government before the government comes to them.
• The Risk for Media: If a journalist publishes a story and a government agency (like the SEC or an embassy) reads it and contacts them before the journalist has filed a formal “TIP” complaint, the journalist and their sources may be disqualified from receiving an award.
• The Solution: To protect your rights, you should file a complaint formally either immediately before or immediately after publishing a story.

4. The Financial Incentives are Real and Ethical

There is often hesitation regarding the ethics of financial rewards for whistleblowing. However, the panel emphasized that these awards are strictly paid out of the sanctions collected from corrupt actors—not from taxpayers.

• Significant Compensation: Whistleblowers have obtained approximately $2 billion in compensation under these programs.
• Pro Bono Support: Because these cases are taken on a contingency basis, whistleblowers do not have to pay legal fees upfront. Firms like Kohn’s often donate a portion of their fees to NGOs and human rights organizations that assist in bringing cases forward.

5. A Call for Global Action

The webinar concluded with a look toward the future. Stephen Kohn warned that relying solely on the U.S. is risky if American prosecutions decline.

• New Jurisdictions: The UK is currently moving toward implementing similar whistleblower and anti-corruption laws.
• UN Resolution: The speakers are pushing for a resolution at the UN Convention Against Corruption (COSP11) in Doha to mandate these effective tactics globally. The goal is to empower NGOs and human rights defenders to demand enforceable anti-corruption laws in their own countries.