UK Report Calls for Whistleblower Rewards and Expanded Fraud Penalties
By Kirstin Ridley
Key Recommendations and Reforms in the UK Fraud Report
LONDON, July 14 (Reuters) - Britain should pave the way for its Serious Fraud Office to financially reward whistleblowers and create a new criminal offence for knowingly making false reports to law enforcement, a government-commissioned report said on Tuesday.
Whistleblower Rewards and Protections
In the long-awaited, second part of an independent review, leading lawyer Jonathan Fisher urged the government to consult on the design of a new reward scheme and recommended making it a criminal offence to harass or intimidate whistleblowers.
Independent Arbitration Panel
After examining why the criminal justice system has struggled to keep pace with rising fraud, Fisher set out nearly 50 recommendations, including the creation of an independent arbitration panel to review whistleblower complaints.
Comparison with International Practices
Financial rewards for whistleblowers have long been a contentious issue in Britain, setting it apart from the United States, where enforcement agencies have long offered informants a share of funds recovered from wrongdoing.
Former SFO Director's Advocacy
Former SFO director Nick Ephgrave campaigned for payouts to help uncover economic crime offences before he left office in January.
HM Revenue & Customs Initiatives
But Britain's tax office moved first. HM Revenue & Customs last November launched a U.S.-style reward programme to help narrow Britain's £46.8 billion ($62.8 billion) tax gap, building on an existing scheme that allowed modest discretionary payments.
Reception and Broader Recommendations
The SFO welcomed Fisher's recommendations, saying whistleblowers can provide vital intelligence that might otherwise go undetected, helping investigators identify wrongdoing more quickly and bring cases to justice.
Review Focus and Fraud Statistics
The first part of Fisher's review, published last year, focused on criminal disclosure rules. The second part, dated December 2025, examines the changing nature of fraud in the digital age, where only 1% of reported fraud cases result in a criminal justice outcome.
Additional Measures Proposed
Among his other recommendations were an anti-fraud levy aimed at increasing social media companies' obligations to combat fraud and doubling the maximum sentence for serious fraud and money laundering to 20 years, although overcrowded prisons have led to the early release of prisoners.
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(Reporting by Kirstin Ridley. Editing by Tommy Reggiori Wilkes and Mark Potter)