Chief Risk Officer wins whistleblowing case against London bank

A recent Employment Tribunal decision delivers a warning to financial institutions that internal communications about their regulatory obligations may constitute a protected whistleblowing disclosure. A subsequent 'detriment' to the employee could fall foul of the Public Interest Disclosure Act, reports Denis O'Connor.

Denis O'Connoris a fellow of both the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Securities and Investment. He was a member of the British Bankers' Association Money Laundering Committee from 2003-10 and a member of the Joint Money Laundering Steering Group's board and editorial panel between 2010 and 2016. He has been a frequent speaker at industry conferences on financial crime issues, both in the United Kingdom and abroad.

Michael Daniels, a former Chief Risk Officer at the London arm of United National Bank (of Pakistan) (UNB), was unfairly dismissed in April 2021 because of his numerous 'whistleblowing' disclosures, an Employment Tribunal has recently ruled. [1] His disclosures related to breaches of recommendations contained in a section 166 report, to breaches of the Prudential Regulatory Authority's Fundamental Rules and other legal or regulatory obligations. The tribunal rejected UNB's view that the PRA rules should be treated as guidance rather than as mandatory requirements. The amount of compensation will be decided at a later date.