UK Whistleblowers and U.S. Reward Laws

In the absence of robust whistleblower programs in the United Kingdom, UK citizens who witness fraud or money laundering activities can seek refuge under United States laws. The Anti-Money Laundering (AML) law of the U.S. is a transnational legislation, applicable even outside its borders, including in the UK.

The Anti-Money Laundering Act is a pivotal piece of U.S. legislation designed to combat money laundering and financial crimes. This law is applicable to financial institutions and covers a range of illicit activities, including but not limited to, money laundering, fraud, and financing of terrorism. Under the AML, UK whistleblowers who report violations can receive financial rewards, ranging from 10% to 30% of the sanctions collected, incentivizing the reporting of illegal activities.

The AML law is built on three critical pillars:

1. Anonymity: Whistleblowers can report violations without revealing their identity, protecting them from potential retaliation. The information provided by whistleblowers is kept confidential, ensuring their safety and privacy.
2. Compensation: Eligible whistleblowers may be compensated for the value of their information by receiving a monetary reward of 10-30% of the sanction levied.
3. Enforcement: The law includes robust enforcement mechanisms to act against the reported violations effectively.

Be aware that while the UK does have the Public Interest Disclosure Act of 1998 (PIDA), which offers remedies to whistleblowers facing harm, detriment, or dismissal for making public interest disclosures, many advocates argue that PIDA is fraught with shortcomings (read Protecting Whistleblowers in the UK: A New Blueprint which is an analysis put out by the Thomson Reuters Foundation).

Therefore, until the UK enacts the Protection for Whistleblowing Bill and establishes an Office of the Whistleblower, it is advisable for whistleblowers to rely on U.S. whistleblower laws.

Apart from the AML Whistleblower Improvement Act, the Dodd-Frank Act is another U.S. law under which UK whistleblowers can file claims. This Act has seen extensive use, with thousands of of complaints filed by foreign nationals, demonstrating its relevance and accessibility to individuals outside the U.S.

The Dodd-Frank Act has been extremely successful, with numerous cases leading to significant sanctions against offending organizations. As of 2021, 783 UK nationals have filed complaints under the Dodd-Frank whistleblower program, highlighting its widespread use and effectiveness.

While specific details of individual cases filed under the Dodd-Frank Act from the UK are generally not publicized due to confidentiality and anonymity protections, the types of cases commonly involve:

• Securities Fraud – this includes misrepresentation, insider trading, accounting fraud, and other fraudulent activities related to securities and investment.
• Banking Violations – activities that breach U.S. banking laws, which may involve UK-based financial institutions or transactions.
• Foreign Corrupt Practices Act Violations – reports involving UK companies or individuals engaging in bribery or other corrupt practices in international business transactions.

The Dodd-Frank Act’s international reach allows UK whistleblowers to report such violations, even if they occur outside the U.S. This has been particularly relevant for global financial services and multinational companies operating in both the UK and the U.S.

The success of the Dodd-Frank Act in empowering whistleblowers and holding corporations accountable has been significant, making it an important tool for individuals in the UK and elsewhere who seek to report financial misconduct.

UK whistleblowers can file claims under U.S. laws anonymously, safeguarding their identity while reporting violations. To do this, they can navigate the FAQs provided by our firm, or set up a free consultation for guidance. Our team has been instrumental in drafting whistleblower legislation and offers expertise in navigating these laws.