Whistleblowing in the United Kingdom
Residents of the United Kingdom are eligible to file confidential and anonymous cases in the U.S. under the Dodd-Frank Act. This law covers frauds in the securities and commodities markets, FX, money laundering and violations of the Foreign Corrupt Practices Act.
Since the Dodd-Frank Act was passed over 750 whistleblowers from the United Kingdom have filed whistleblower cases in the United States with the U.S. Securities and Exchange Commission alone. UK residents can also be filed with the U.S. Internal Revenue Service, Commodity Futures Trading Commission, and Department of Justice.
Read more about the rise in whistleblower tips from UK citizens:
The following are enforcement actions published by the SEC or CFTC concerning UK companies for which whistleblower rewards have been or can be paid:
SEC Dodd-Frank Cases in the UK
Case shown are those that are or were eligible for rewards.
Barclays PLC, Barclays Bank PLC, and Barclays Capital Inc.
- SEC Charges Barclays with FCPA Violations Related to Its Hiring Practices (September 27, 2019)
In 2019, Barclays PLC was ordered to pay over $6,000,000 to the U.S. Securities and Exchange Commission after the bank’s Asia Pacific Region was caught employing relatives and friends of foreign officials through fraudulent and unofficial internship programs. This was done by Barclays, a UK-based bank, in hopes of gaining or extending business and benefits with government figures. An approximated 117 individuals were illy hired by Barclays between April 2009 and April 2013. Violating the books and records and internal accounting controls provisions of the Securities Exchange Act of 1934, Barclays agreed to pay $6,308,726, consisting of disgorgement of $3,824,686, prejudgment interest of $984,040 and a $1.5 million civil penalty to the SEC. Barclays did not admit to or deny the findings of the SEC’s investigation.
- ADMINISTRATIVE PROCEEDING (File No. 3-17978) (May 10, 2017)
- ADMINISTRATIVE PROCEEDING (File No. 3-17953; 3-17954; 3-17955) (May 1, 2017)
- ADMINISTRATIVE PROCEEDING (File No. 3-17077) (January 31, 2016)
- ADMINISTRATIVE PROCEEDING (File No. 3-16154) (September 23, 2014)
Standard Bank Plc.
- Standard Bank to Pay $4.2 Million to Settle SEC Charges – Bank Agrees to $36.9 Million Global Settlement with the SEC and the U.K.’s Serious Fraud Office (November 30, 2015)
In 2015, the London-based Standard Bank Plc was charged with failing to disclose 2013 payments regarding debt issued by the Tanzanian government. Part of the $600,000,000 paid to the government was given to a firm affiliate, yet no record of this was made and it was unclear what role this affiliate had in the transaction. A $4,200,000 penalty was issued against Standard Bank Plc by the SEC, as well as charges from the United Kingdom’s Serious Fraud Office. In combination with the U.K.-imposed fines, Standard Bank Plc faced a total of $36,900,000 in relief.
HSBC
- SEC Charges HSBC’s Swiss Private Banking Unit With Providing Unregistered Services to U.S. Clients (November 25, 2014)
HSBC Private Bank (Suisse) is a subsidiary of the U.K.-based HSBC Group. In 2014, the SEC charged the Private Bank with the failure to register with the SEC before servicing clients in the U.S. in cross-border brokerage and investment advisory. This lasted 10 years, served over 365 U.S. clients, and amounted to the collection of over $5,700,000 in fees all while violating securities laws. The bank admitted to its wrongdoing and settled with the SEC for $12,500,000.
- ADMINISTRATIVE PROCEEDING (File No. 3-16288) (November 25, 2014)
Lloyds Banking Group
- Notice of Covered Action (October 1, 2014)
BP p.l.c.
- BP to pay $525 million penalty to settle SEC charges of securities fraud during Deepwater Horizon oil spill (November 15, 2012)
SEC Press Release | SEC Complaint
While oil gushed out of the Deepwater Horizon rig in 2010, BP understated the damage being done to investors in hopes of keeping investors at peace. These fraudulent public statements by the U.K.-company assured that only 5,000 barrels of oil per day were entering the Gulf of Mexico, grossly misrepresenting the possible 146,000 barrels a day that could have been. Then the SEC’s third-largest penalty of all time, BP agreed to settle for $525,000,000.
CFTC Dodd-Frank Cases in the UK
Case shown are those that are or were eligible for rewards.
Barclays PLC, Barclays Bank PLC, and Barclays Capital Inc.
- CFTC Orders Barclays to Pay $115 Million Penalty for Attempted Manipulation of and False Reporting of U.S. Dollar ISDAFIX Benchmark Swap Rates (May 20, 2015)
Between January 2007 and June 2012, Barclays Bank and its relevant subsidiaries attempted to manipulate and make false reports on the U.S. Dollar International Swaps and Derivatives Association Fix (USD ISDAFIX), hoping to miscommunicate interest rates. Mandated remedial steps, along with a $115,000,000 fine, were issued against Barclays “to ensure the integrity and reliability of the Bank’s benchmark submissions, and to improve related internal controls,” according to the CFTC, who carried out this investigation and charge.
- CFTC Orders Barclays to Pay $115 Million Penalty for Attempted Manipulation of and False Reporting of U.S. Dollar ISDAFIX Benchmark Swap Rates (July 22, 2015)
Between January 2007 and June 2012, Barclays Bank and its relevant subsidiaries attempted to manipulate and make false reports on the U.S. Dollar International Swaps and Derivatives Association Fix (USD ISDAFIX), hoping to miscommunicate interest rates. Mandated remedial steps, along with a $115,000,000 fine, were issued against Barclays “to ensure the integrity and reliability of the Bank’s benchmark submissions, and to improve related internal controls,” according to the CFTC, who carried out this investigation and charge.
- Notice of Covered Action No. 2015-037 (May 20, 2015)
In 2015, the CFTC charged Barclays Bank PLC with manipulation, false reporting, and aiding and abetting other banks’ attempts to manipulate, global foreign exchange (FX) benchmark rates. The CFTC found that Barclays, along with other banks, used private chat rooms to coordinate their fabrication of the day’s numbers and rates to report on, attempting to benefit the positions of certain traders and incentivize certain actions. Barclays was ordered to pay a $400,000,000 penalty, cease and desist from further violations, and implement a stronger internal supervision system.
- CFTC Orders Barclays to pay $200 Million Penalty for Attempted Manipulation of and False Reporting concerning LIBOR and Euribor Benchmark Interest Rates (July 2, 2012)
Press Release | Order | Notice | Statement
Barclays PLC, Barclays Bank PLC, and Barclays Capital Inc., the U.K. bank’s U.S.-registered capital market company, were charged in 2012 with attempting to manipulate and making false reports concerning two global benchmark interest rates, LIBOR and Euribor, on numerous occasions and sometimes on a daily basis over a four-year period. This began as early as 2005, when LIBOR submissions were made inadequately low in order to protect Barclays’ financial condition and public perception. As a result, Barclays faced a $200,000,000 civil penalty.
HSBC
- Notice of Covered Action No. 2018-003 (February 5, 2018)
- CFTC Orders Five Banks to Pay over $1.4 Billion in Penalties for Attempted Manipulation of Foreign Exchange Benchmark Rates (February 2, 2015)
Action | Press Release | Order | Statement by Chairman Timothy Massad
Along with four other major banks, HSBC Bank plc was found to have been attempting to manipulate the global foreign exchange benchmark, as well as aid and abet other banks doing so as well. Bankers were found to be using private chat rooms in order to discuss the manipulation of figures while sharing confidential, disclosed customer order information and trading positions. Together, Citibank N.A., HSBC Bank plc, JPMorgan Chase Bank N.A., The Royal Bank of Scotland plc, and UBS AG (UBS) faced a $1.4 billion dollar total fine, $275 million of which was to be paid by HSBC.
Lloyds Banking Group
- CFTC Charges Lloyds Banking Group and Lloyds Bank with Manipulation, Attempted Manipulation, and False Reporting of LIBOR (July 28, 2014)
Notice of Covered Action | Press Release | Order
In 2014, Lloyds Banking Group plc and Lloyds Bank plc, both based in London, were charged with the attempted manipulation of foreign currency rates. The group, on a few occasions, was successful in the manipulation of both the Sterling London Interbank Offered Rate and the Yen London Interbank Offered Rate, and also attempted to do this with the U.S. dollar. The CFTC ordered Lloyds Banking Group plc and Lloyds Bank plc to pay a $105,000,000.
- CFTC Charges Lloyds Banking Group and Lloyds Bank with Manipulation, Attempted Manipulation, and False Reporting of LIBOR (October 1, 2014)
Covered Action | Press Release | Order
In 2014, Lloyds Banking Group plc and Lloyds Bank plc, both based in London, were charged with the attempted manipulation of foreign currency rates. The group, on a few occasions, was successful in the manipulation of both the Sterling London Interbank Offered Rate and the Yen London Interbank Offered Rate, and also attempted to do this with the U.S. dollar. The CFTC ordered Lloyds Banking Group plc and Lloyds Bank plc to pay a $105,000,000.
Royal Bank of Scotland
- CFTC Orders The Royal Bank of Scotland to Pay $85 Million Penalty for Attempted Manipulation of U.S. Dollar ISDAFIX Benchmark Swap Rates (February 3, 2017)
Notice of Covered Action | Press Release | Order
After attempting to manipulate the U.S. Dollar International Swaps and Derivatives Association Fix benchmark between January 2007 and March 2012, The Royal Bank of Scotland plc was caught and charged by the Commodity Futures Trading Commission in 2017. This manipulation was done in hopes of benefitting from certain derivatives positions the Royal Bank of Scotland held that were priced or valued off of the USD ISDAFIX benchmark. The CFTC ordered that the Bank pay an $85,000,000 civil penalty, as well as the mandatory implementation of strengthened controls and procedures.
- CFTC Orders The Royal Bank of Scotland to Pay $85 Million Penalty for Attempted Manipulation of U.S. Dollar ISDAFIX Benchmark Swap Rates (February 15, 2017)
Covered Action | Order | Press Release
In 2017, The Royal Bank of Scotland faced an $85,000,000 civil penalty issued by the CFTC after attempting to manipulate the ISDAFIX benchmark. Unlawful conduct took place between January 2007 and March 2012 when traders looked to benefit from certain derivative positions it held that were priced or valued off of the U.S. Dollar ISDAFIX benchmark. On top of this fine, The Royal Bank of Scotland was required to strengthen its internal controls and take extra steps in ensuring this conduct does not happen or go undetected again.
- CFTC Orders Five Banks to Pay over $1.4 Billion in Penalties for Attempted Manipulation of Foreign Exchange Benchmark Rates (February 2, 2015)
Covered Action | Press Release | Order | Statement by CFTC Chairman
Along with four other major banks, The Royal Bank of Scotland was found to have been attempting to manipulate the global foreign exchange benchmark, as well as aid and abet other banks doing so as well. Bankers were found to be using private chat rooms in order to discuss the manipulation of figures while sharing confidential, disclosed customer order information and trading positions. Together, Citibank N.A., HSBC Bank plc, JPMorgan Chase Bank N.A., The Royal Bank of Scotland plc, and UBS AG (UBS) faced a $1.4 billion dollar total fine, $290 million of which was to be paid by The Royal Bank of Scotland.
- CFTC Orders The Royal Bank of Scotland plc and RBS Securities Japan Limited to Pay $325 Million Penalty to Settle Charges of Manipulation, Attempted Manipulation, and False Reporting of Yen and Swiss Franc LIBOR (May 1, 2013)
Press Release | Order | Chairman Gary Gensler Statement | Commissioner Bart Chilton Statement
In 2013, the CFTC charged The Royal Bank of Scotland plc and RBS Securities Japan Limited with the manipulation, attempted manipulation, and false reporting related to LIBOR for Yen and Swiss Franc. These benchmark interest rates are critical to both the financial markets and the public, who rely on the integrity of this rate to carry out financial activity. The Royal Bank of Scotland was ordered to pay a $325,000,000 civil penalty, cease and desist from further violations, and reinstate integrity and security into their bank with new and improved fraud detection practices.
One reason for the influx of UK whistleblowers to the United States was the Bank of England’s rejection of creating a Dodd-Frank style remedy in the United Kingdom. The Bank of England’s report was analyzed by our firms partner Stephen Kohn, and completely debunked, which you can read at the National Whistleblower Center:
- Creating an Effective Anti-Corruption Program: A Rebuttal to the Bank of England’s Findings on Whistleblower Incentives (Download PDF Version)
This rebuttal was covered extensively by our firm and various media:
