If that happened, authorities would rapidly lose the will to investigate breaches.
1. https://en.wikipedia.org/wiki/Talk:Civil_forfeiture_in_the_U...
The only thing where there is a really obvious wrong incentive are parking violations, those go to the community, the community prosecutes and sets the local parking regs. So that, along with speeding tickets inside city limits (in parts), is a money-printing business for them.
If fines were distributed to the public and the ICO collected zero income, I believe the political will do finance it would disappear. I was not suggesting officers themselves would change priorities based on individual pay outs, sorry for the confusion.