The Serious Fraud Office spent an additional £1.25 million on counsel, a 17% increase, compared with last year, while bringing in £2.89m in proceeds of crime, its latest annual report reveals. The report, for the year to 31 March 2026, highlights the organization’s financial activities and performance. Notably, the increase in counsel fees is a significant aspect of the SFO’s financial performance, as it reflects the organization’s efforts to secure expert legal advice and support for its investigations.
Interim director Graham McNulty thanked his predecessor Nick Ephgrave for nearly 40 years of public service. Ephgrave joined the SFO in 2023 but retired from the role halfway through his five-year tenure. McNulty acknowledged Ephgrave’s legacy, which includes the SFO’s move to new premises in Canary Wharf, slated for the end of 2026. This move is expected to provide the SFO with a more modern and efficient working environment, which could potentially enhance its ability to investigate and prosecute complex fraud cases.
Financial Performance
The SFO’s gross spending totalled £88.55m, with staff costs making up almost half of that. Counsel fees totalled £8.87m in 2025/26, up from £7.6m in 2024/25. ‘Other’ investigation costs fell to £10.94m in 2025/26 from £15.5m the year before. The reduction in ‘other’ investigation costs may be attributed to the SFO’s efforts to streamline its operations and optimize its resources. Additionally, the organization’s ability to bring in £2.89m in proceeds of crime demonstrates its commitment to recovering assets and holding individuals and organizations accountable for their actions.
The organization’s vacancy rate, at 14.33%, was described as ‘stable’ after a ‘targeted approach to recruitment’. In 2024/25, the vacancy rate was 13.1%. This stability is notable, given the challenges the SFO faces in hiring lawyers, and it may indicate that the organization is getting better at retaining staff. The SFO’s efforts to recruit and retain talented professionals are key to its success, as it relies on skilled investigators, lawyers, and support staff to carry out its mission.
Operational Activities
The SFO secured a £500,000 confiscation order, decades after the original conviction. The organization also received around 1,500 referrals to its intelligence division and managed 335 whistleblowing disclosures, taking action in 333 of them. The high percentage of whistleblowing disclosures that resulted in action being taken suggests that the SFO is committed to responding to and investigating allegations of fraud and corruption. Furthermore, the SFO’s ability to secure a significant confiscation order after many years demonstrates its perseverance and dedication to recovering proceeds of crime.
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The average length of investigations was four years and three months, the same as the previous year. The SFO currently has around 120 active caseloads, spanning criminal, civil, proceeds of crime, and international assistance cases. The complexity and duration of these investigations highlight the challenges faced by the SFO in pursuing fraud and corruption cases, which often involve sophisticated schemes and multiple jurisdictions.
As the SFO continues to evolve, it is exploring new opportunities, such as the deployment of a general-purpose AI tool for non-operational use and pilots of potential operational AI use-cases. This development may have significant implications for the people affected by the SFO’s work, as it could lead to more efficient and effective investigations. The use of AI could potentially enhance the SFO’s ability to analyze complex data sets, identify patterns, and predict outcomes, ultimately leading to better decision-making and more successful investigations.
Case Management and Technology
The SFO’s new case management system is a first for the organization and has stringent requirements to handle the scale and complexity of its work. The system will be fully rolled out to case teams in 2026/27. This investment in technology may help the SFO to better manage its caseload and improve its overall performance. The case management system is designed to provide a centralized platform for managing investigations, tracking progress, and sharing information, which could lead to increased productivity and collaboration among SFO staff.
According to the report, the SFO is focused on continuing its work to drive delivery, strengthen disclosure, and accelerate innovation, including the responsible use of AI. As interim director, Graham McNulty is committed to building on the legacy of his predecessor and taking the organization forward. The SFO’s commitment to innovation and technology is reflected in its efforts to explore new opportunities and invest in tools and systems that can enhance its performance and efficiency. By adopting new technologies and approaches, the SFO aims to stay ahead of the curve in the fight against fraud and corruption.
The SFO’s efforts to strengthen disclosure are also noteworthy, as they demonstrate the organization’s commitment to transparency and accountability. By providing clear and timely information to stakeholders, the SFO can build trust and confidence in its work, which is essential for its success. Furthermore, the SFO’s focus on driving delivery and accelerating innovation reflects its commitment to achieving results and making a tangible impact in the fight against fraud and corruption. By pursuing these goals, the SFO can continue to evolve and improve, ultimately leading to better outcomes for the people and organizations it serves.
