2024 WLG Whistleblower Guide: Argentina (Alfaro Abogados)

Is there a law to protect whistleblowers? If so, which law?

In Argentina, no specific legislation is dedicated exclusively to protecting whistleblowers within the private sector. However, in the public sector, Law No. 21,592 establishes certain protections for individuals who report illegal activities or misconduct. This law criminalizes retaliation against whistleblowers in specific circumstances, thereby offering protection to those who disclose acts of corruption or other unlawful conduct within public institutions. Additionally, Law No. 27,401 (Corporate Criminal Liability Law) includes provisions to address corruption within the private sector, although it does not explicitly establish protections for whistleblowers.

 Are companies legally obliged to introduce a whistleblowing system?

There is no general legal obligation for companies to implement a whistleblowing system. Nevertheless, companies involved in public procurement or those entering into contracts with the government are subject to regulations that encourage or mandate such systems, particularly for preventing corruption, as established under Law No. 27.401 in our country.

If so, which companies must introduce a whistleblowing system (number of employees, turnover, sector)?

In Argentina, there is no specific legal requirement for private companies to implement a whistleblowing system based on their size, number of employees, or turnover. That said, companies in the public sector or those involved in public contracts or agreements with the state are expected to have mechanisms for reporting misconduct as part of efforts to prevent corruption.

What forms can a whistleblowing system take (written, verbal, email, electronic tool)?

Although not legally mandated, companies in Argentina that implement a whistleblowing system can adopt various formats for reporting misconduct. These can include written reports, verbal complaints, email submissions, or through dedicated electronic platforms specifically designed for whistleblowing purposes. Among these options, electronic tools are particularly favored due to their accessibility, user-friendliness, and the added benefit of ensuring the anonymity and confidentiality of the whistleblower. Such platforms also facilitate a more efficient and streamlined reporting process, allowing individuals to submit their concerns in a secure and protected environment.

 Which reports must be permitted?

Reports permitted under a whistleblowing system generally include allegations of illegal activities, fraud, violations of labor laws, environmental breaches, or unethical conduct in general. In particular, under Law No. 27,401, reports related to corruption within the private sector, such as bribery, embezzlement, or mismanagement of public funds, are explicitly encouraged.

Must anonymous reporting be guaranteed?

Although Argentina does not have a specific law requiring anonymous reporting, it is considered good practice to provide this option, especially in the context of corruption-related reports. Anonymity is crucial to protect whistleblowers from potential retaliation.

Who must be able to provide information (only employees or also external third parties)?

Whistleblowing systems may allow both employees and external third parties, such as suppliers, contractors, or customers, to report misconduct. While the law does not mandate that external parties be included, it is considered beneficial for companies to allow third-party reports, as they may provide valuable information about unethical or illegal conduct.

Can companies rely on one centralized hotline, or is it necessary to have one hotline for each subsidiary?

Companies are not required by law to have a separate hotline for each subsidiary. A centralized hotline is typically sufficient as long as it ensures proper access and confidentiality when handling reports. However, large organizations with multiple subsidiaries may choose to set up regional or subsidiary-specific hotlines depending on their specific needs.

Can a whistleblowing system also be operated by an external body (e.g. consultant)?

Yes, companies can outsource the management of their whistleblowing systems to an external entity, such as a consultant or a third-party service provider. This approach is often preferred to ensure impartiality, confidentiality, and to avoid conflicts of interest, particularly in larger organizations or in sensitive cases.

Are sanctions imposed for failure to introduce a whistleblowing system?

Currently, in Argentina, there are no specific sanctions for companies that fail to implement a whistleblowing system. However, companies involved in public contracts or participating in public tenders may face reputational or contractual consequences if they do not comply with regulations aimed at preventing corruption, which may include the implementation of whistleblowing mechanisms.