Herve Falciani Whistleblower

For this final paper, I would like to discuss the historical failures that came into light when Mr. Clifford Stoll (the author of “Cuckoo’s Egg: Tracking a spy through the Maze of Computer Espionage” book) stumbled upon a $ 0.75 accounting error and the revelations that followed, its potential findings, risks and costs associated and why it is important to address and fix those security holes. Cuckoo’s Egg is an interesting read and the author was successful in presenting to his readers the picture of beginning of Internet days (arpanet, then), network practices then. Despite of the fact that this book describes a real incident that in 1980’s, some of the findings are relevant and torment us even today.

Review “Just pucker and blow: An analysis of corporate whistleblowers” in Chapter 2. Please respond to the following:

Obviously, linking the content of the 2014 Global fraud study with Birkenfeld evidence against his former employer was accurate due to the fact that UBS, as a financial institution, effectively displayed all fraud patterns discussed above. Moreover, the whistleblower was someone who was very aware of the bank’s misconduct and decided to redeem himself by revealing the scheme. Unfortunately, Birkenfeld lack of integrity ended up costing him more than the masterminds behind the secrecy of UBS banks.

During the G20 summit in Seoul 2010, the whistleblower protection law was evaluated across the countries and Australia was one of the highly rated countries with US and Canada in the public sector (Wolfe. 2014, p. 4). On the contrary, the level of whistleblower protection in the private sector is found weaker than the public sector (Wolfe. 2014, p. 4). This report critically examines the current protection regime in both public and private sectors and depicts the lives of whistleblowers after disclosing the wrongdoings of the organisation to our society. Despite the legislative requirement to establish stronger whistleblower protection law in Australia, it is not applied

Unfortunately, the staff led with their beliefs and as a result jeopardized the operations of the bank and should be reprimanded as such. However, as an MNE the bank will be aiming to keep costs down and focus on keeping both customer and employee happy so “the untouchable water carrier” will most likely be the one to feel the brunt of the reprimand.

Jackson and Raftos (1997) referred to whistle blowing as an avenue of last resort. Employees find themselves in these situations when the authorities at their organisations have failed to take actions on reported issues affecting that organisation. Wimot (2000) likened whistleblowing to a spectrum. At one end of this spectrum whistleblowing would only cause minimal pain and scars on the stakeholders and organisation while on the other end is the worst scenario where the whistleblowing effects are turbulent and often experienced to be negative to all those involved (ibid).

All the working staffs should be trained to be trustworthy employees so that this type of behavior is curbed in the future. Every person need to be feeling secure when having their money in the bank (Higgins, 2015). Though it shall be a difficult task especially maintaining the old customers apart from creating new account with the bank. The bank is supposed to create a video series which is only view internally in which the senior executives are require to have a discussion on all the grey areas of ethics. Through this they shall be able to manage their business in terms of making operational and managerial decisions. These videos shall play a major role in the management of the operations in the bank. The bank should explain to its employees that after they are found guilty in the bank they shall be fined before being

Companies in today’s society are often required to abide by an abundant amount of rules and regulations imposed upon them which stem from government and law enforcement authority. In analyzing the Case of “The Reluctant Security Guard” we will examine the decision making process which led to David Tuff effectively ‘whistle blowing’ for what he felt was the right thing to do.

He also gave names of persons, who mediated in order to open company account in banks, as well as remittances and transfers of sums of money to and from the controversial amounts, including the final recipients of all these transactions.

this is where the behavior is examined and changed by using reprimands or retraining. Finally,

Based on the case given, the bank controllers were only instructed to monitor the net trading positions, but not the Dalta One traders’ gross exposure. The bank controllers did not inform their supervisors when they had noticed that Kerviel’s transactions were irregularities which involved an abnormally high amounts in his transactions as that was not the specifically part of their job. Thus, Kerviel able to use his knowledge of the company control procedures to hide his fake trades with his false documents and emails.

In its decision the Court of appeal did make reference to the dual pull on Banks in having to comply with the heavy demands of a regulator whilst mitigating civil actions from potentially disgruntled customers. It also made reference to a previous court case (De Silva v NatWest Bank 2006) where the court made specific reference to the meaning of the word ‘suspect’. Here, in relations to the claim by Mr Shah that the reason for the suspicion itself was irrational, negligently self-induced and mistaken, the court confirmed that HSBC merely had to think that there was a possibility, which was more than fanciful, that the relevant facts exist when completing its SAR. On a wider note the Court also deemed that in the future having a suspicion may constitute a good defence for Banks.

He also increased the risk exposure of the bank and had hidden it from its superiors. By using his reputation and the trust from the bank he speculated while he should not have been able to do so.

The nature of the banker-customer relationship is one of agency. Amongst the duties that stem from this relationship, the bank’s duty of confidentiality is clearly an issue of great importance. The focus of this essay is on the scope and limitations of the bank’s duty, both to its customers as to the public. In order to analyse this it is necessary to firstly consider the idea of duty of confidentiality, Secondly, it is necessary to study the Court of Appeal’s judgement in the case of Tournier. Thirdly, this essay will take the Jack Committee report into consideration. Lastly, this paper will briefly mention the Banking Code, it will also discuss whether the principle in Tournier may be outdated and if so, whether it is in need of a new crystallised self, clearly stating the limits and boundaries of the bank’s duties both to the customer and to the public itself in the form of a statute. To conclude this essay will consider the future of the duty of confidentiality.

However, can we say the whistleblowing is ethical, as a lot of lives can be ruined just on accusation? What are the main issues about blowing the whistle? To answer those questions, I’ll lay my observations on the William Cohan article on Wall Street whistle-blowers and especially with the case of Eric Ben-Artzi, former analyst at the Deutsche Bank, and apply it some business ethics theories.