What is ‘tipping off’?

In anti-money laundering (AML) compliance, tipping off refers to telling someone that they are the subject of a money laundering investigation or that a suspicious activity report (SAR) has been filed about them.

Under sections 333A–333D of the Proceeds of Crime Act 2002 (POCA), tipping off is a criminal offence. It applies to all professionals working in the regulated sector, including accountants, lawyers and property agents, and can lead to a fine or even imprisonment.

The law is strict because even a subtle hint could compromise a criminal investigation. Once a SAR has been submitted, the National Crime Agency (NCA) may be monitoring the individual or transaction. Alerting them could allow evidence to be destroyed or money to be moved beyond reach.

When tipping off occurs

Tipping off happens when someone:

• Tells or implies to a client or third party that a SAR has been or will be made
• Reveals that law enforcement is investigating the client or their transaction
• Discloses information that might prejudice an ongoing or proposed investigation

Even well-intentioned comments can cross the line. For example:

• Mentioning that a client’s transaction has been “flagged” or “put on hold” because of a report
• Asking for extra documents and then saying “it’s for a money laundering check” after a SAR is made
• Warning a client that authorities might contact them soon

Once a SAR is submitted, communication about it must stop unless directed by the NCA.

The difference between tipping off and good AML communication

It’s important not to confuse tipping off with normal AML processes. You’re still expected to:

• Ask questions to complete due diligence
• Request information to verify identity, source of funds, or ownership
• Decline or delay work if you can’t complete your AML checks

These are part of a lawful, risk-based approach. The issue arises after you’ve submitted an internal or external SAR. At that point, you must avoid saying anything that could make the client aware of the report or its contents.

Legal framework

Proceeds of Crime Act 2002 (POCA)

• Section 333A: makes it an offence to disclose that a SAR has been made if that disclosure is likely to prejudice an investigation.
• Section 333B–333D: set out defences and exemptions, including disclosures made within the same organisation or between relevant professionals under certain conditions.

The offence can apply even if no active investigation has begun. It’s enough that your disclosure might prejudice one.

Similar rules apply for terrorist financing under section 21D of the Terrorism Act 2000, prohibiting disclosure of SAR-related information about suspected terrorist funds or activity.

Penalties for tipping off

Tipping off is a serious criminal offence. Conviction can lead to:

• Up to two years’ imprisonment
• An unlimited fine
• Regulatory sanctions from your supervisor or professional body

Beyond the immediate legal penalties, the consequences of tipping off can ripple far wider. Regulators treat it as evidence of weak AML governance, so even an unintentional disclosure can trigger a full compliance review. The reputational fallout can be just as damaging as the fine itself. Once trust in your confidentiality and competence is questioned, it’s hard to rebuild.

How to avoid tipping off

1. Keep SARs confidential
   Only your MLRO and those directly involved in the issue should know about SARs. Avoid discussing them in team meetings, client calls or emails.
   
2. Train your team
   Everyone should understand what counts as tipping off, when it applies and how to handle client queries. Annual training and refresher sessions are essential.
   
3. Use clear internal escalation routes
   Staff should know exactly how to raise internal SARs and when to stop communicating with the client once suspicion has been reported.
   
4. Record your actions
   Keep audit trails showing when suspicions arose, who was informed and when the SAR was filed. Strong documentation supports your defence if challenged.
   

If you believe you may have inadvertently revealed information, contact your MLRO immediately. They may need to file a supplementary SAR or inform the NCA. Never attempt to correct the situation by contacting the client again.

Final thoughts

Tipping off is one of those parts of AML that can catch even the most diligent professionals out. It usually happens not through carelessness but through instinct, wanting to reassure a client or explain a delay. But once a SAR is made, the safest thing you can do is step back, stay silent and let the process work.

In my experience, businesses that handle this well are the ones that prepare early. They make sure staff know what to say (and what not to) and build a culture where reporting suspicion isn’t treated as a drama. It’s just part of doing things properly.

That’s what good AML really comes down to: awareness, consistency and employees that properly understand their responsibilities.