(Assume that the fact that min cuts are closed under intersection.)
We claim that the intersection of min cuts (closest cut), is exactly the cut returned by FF. Here's a rough sketch of a proof.
From MaxFlow MinCut Theorem, the following result is established:
a cut is minimum iff every edge leaving it is fully saturated, i.e. f(e) = c(e).
So, for contradiction assume there is a min cut C = Ca, Cb which is closer to the source than the one returned by FF, which I will call F = Fa, Fb.
Then take the edge e = (v, w) such that it was in Fa but now is not in Ca (it is an outgoing edge of Ca). This edge must be fully saturated. So by def of residual graph there would be only backwards edge (w, v) in the residual graph and then that node w would be unreachable - yet w was in Fa, so it must have been reachable, a contradiction.