Unlawful Conduct Reporting

30th January 2024

Whistleblowing Act

Further to the publication in 2019 of the EU Whistleblowing Directive, the Czech Republic whistleblowing protection law came into effect on the 01/08/2023. This document sets out the type of concerns that can be raised under the new law, the channels available to staff to report these concerns and the protections in place.

Background

On 01/08/2023 the Czech Republic transposition of the EU Whistleblowing Directive came into effect through Act on Protection of Whistle-blowers. This law requires Citibank Europe plc, organizační složka to introduce local internal reporting channels for eligible persons to raise Qualifying Concerns.

What is a Qualifying Concern?

QC are a subset of concerns that are specifically provided for under the EU Whistleblowing Directive with specific protections attached. These are limited to a report of information relating to one or more of the following:

• have the elements of a criminal offence,
• have the characteristics of an administrative offence for which the law provides for a fine of at least CZK 100,000,
• violate Act no. 171/2023 Coll., on the Protection of Whistle-blowers, as amended or
• infringe another legal regulation or a regulation of the European Union in the area of
  1. financial services, statutory audit and other audit services, financial products and financial markets,
  2. corporate income tax,
  3. prevention of money laundering and terrorist financing,
  4. consumer protection,
  5. compliance with product requirements, including product safety,
  6. transport and road safety,
  7. protection of the environment,
  8. food and feed safety and animal health and welfare,
  9. radiation protection and nuclear safety,
  10. competition, public auctions and public procurement,
  11. protection of internal order and security, life and health,
  12. protection of personal data, privacy and security of electronic communications networks and information systems,
  13. protection of the financial interests of the European Union, or
  14. functioning of the internal market, including the protection of competition and state aid under the European Union law.

Who is eligible to raise a Qualifying Concern?

Under the Act on the Protection of Whistle-blowers the following are eligible to raise a Qualifying Concern.

1. current/former employees,
2. contractors,
3. agency workers,
4. trainees (not under a contract of employment),
5. shareholders of an undertaking,
6. a member of the administrative, management or supervisory body of an undertaking, including nonexecutive members,
7. volunteers,
8. job applicants,
9. an individual who acquires information on a relevant wrongdoing during pre-contractual negotiations

What reporting channels are available?

What are the differences between the reporting channels?

When the Citibank Europe plc, organizační složka Reporting Channel is used, Qualifying Concerns will be handled in accordance with the Czech Republic legislation including being received and where appropriate reviewed in Citibank Europe plc, organizační složka along with specific response times and follow ups.

Where you contact the Citi Ethics Hotline to escalate a concern, those concerns, including Qualifying Concerns, will be handled in accordance with the processes and procedures governing the Ethic Office. This will not necessarily be handled in accordance with the Czech Republic legislation, where for example there are prescribed different timelines within which Qualifying Concerns need to be considered by employers.

Anonymous Reporting & Confidentiality

Anonymous reports cannot be made through this system and any anonymous reports received will not be accepted or followed up on except the reports related to the prevention of money laundering and terrorist financing.

All Qualifying Concerns raised irrespective of reporting channel are treated as confidentially as possible, consistent with the need to investigate and address the matter.

External Reporting Channels

Qualifying Concerns can also be raised to the local competent external authorities, details of which are outlined below.

Protection Against Retaliation

Regardless of the channel used, Citi prohibits any form of retaliatory action against anyone who raises concerns or questions regarding ethics, discrimination, or harassment matters; reports suspected violations of law, regulation, rule, or breach of policy, standard, procedure, or the Code of Conduct; or participates in a subsequent investigation of such concerns