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Financial Services Law Insights and Observations

Non-profit advocacy organization accuses UK bank of deceptive report on US whistleblower tip rewards programs

Financial Crimes FCPA Whistleblower

Financial Crimes

On June 20, an American non-profit advocacy organization for whistleblowers and a European advocacy organization for whistleblowers formally requested that a UK bank retract a report that they alleges mischaracterizes US whistleblower tip rewards programs, including regarding FCPA tips. The report, originally released in 2014 by the bank in conjunction with the UK’s Financial Conduct Authority, had criticized the use of financial incentives for whistleblowers in the US, arguing that they were ineffective, “don’t generate quality tips,” and “impose expensive and unnecessary governance structures.” The report concluded that the UK should adopt regulatory changes to improve protections for all whistleblowers rather than provide rewards, which allegedly allot large financial payouts to a tiny minority of whistleblowers. 

The American organization disputed these assertions in a rebuttal report, released this year. According to the whistleblower advocacy organizations, many of the assertions in the bank’s report “are simply false” and the continued use of the report “inhibit[s] the implementation of effective anti-fraud laws in the UK.” The organizations further complained that the 2014 report has been used as justification for stakeholders in UK to not create financial incentives for whistleblowers and that it has stifled momentum in the UK for an effective whistleblower program.