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Wednesday, April 22, 2026

Expanded Japanese Whistleblowing Rules Reach Small & Medium Business - Lexology

Expanded Japanese whistleblowing rules are among the latest to come into effect as part of a broad trend of increasing regulatory requirements for incident reporting across the globe.

Previously in effect for large organizations, the expanded Whistleblower Protection Act requires smaller companies operating in Japan to implement systems that enable and protect reporters of misconduct. The updated regulation went into effect on June 1, 2022.

Among the main requirements are the designation of personnel to receive and investigate incident reports, and the establishment of an internal system to administer the process, according to a thorough overview from the blog of global law firm Baker McKenzie. For organizations with 300 or fewer employees, the requirement for an internal system are reduced to “make efforts.”

The regulations come as nations in the European Union are also implementing rules from the EU Whistleblowing Directive. Like Japan’s Act, the regulation requires many organizations to deploy robust incident reporting programs.

With Japan’s standing as the world’s fourth-largest exporter, according to data from Eurostat, the Japanese regulations stand to have a major impact on the global compliance landscape. The same holds true for whistleblowing regulations across the 27-member EU bloc – the world’s second-largest exporter.

Concerningly, it’s not clear that organizations are making whistleblowing enough of a priority despite the accelerating compliance landscape....



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