UK government proposes whistleblower rewards for economic crimes

The UK government has launched a consultation to reform whistleblowing laws, proposing that the Serious Fraud Office (SFO) be granted powers to provide financial rewards to individuals who report serious economic wrongdoing. The initiative aims to increase the quantity and quality of reports regarding fraud, bribery, and money laundering, potentially encouraging companies to self-report misconduct.

Inspired by successful programs in the United States, such as the one run by the Securities and Exchange Commission, the UK proposal seeks to incentivize the uncovering of crimes that lead to corporate convictions or enforcement actions. The consultation, led by Business Secretary Jonathan Reynolds and Future of Work Minister Kate Dearden, will examine eligibility, reward caps, and protections against false reports or harassment. The consultation period is scheduled to close on January 8, 2027.

Legal experts have expressed skepticism regarding the move. Critics warn of a “moral hazard,” suggesting that financial incentives may cause a whistleblower’s motives to be questioned in court. Some legal professionals argue that whistleblowing should remain a social duty rather than a profit-making exercise and emphasize the need for stronger protections against retaliation.