Tipping off is a criminal offence under the Proceeds of Crime Act 2002 (POCA 2002). It is committed when a person discloses, to the subject of a Suspicious Activity Report (SAR) or to anyone else, information likely to prejudice a money-laundering investigation, or reveals that a SAR has been or may be made. The prohibition exists to ensure that suspected money launderers are not alerted that they are under scrutiny before law enforcement can act.
Why tipping off matters
The offence is significant because the risk is everywhere in everyday customer contact. A member of staff who tells a customer their transaction has been delayed “because of a report to the authorities”, or who lets slip that an account is being investigated, can commit the offence. Tipping off carries a potential prison sentence and an unlimited fine.
This is why firms train customer-facing staff to handle queries about delayed transactions, frozen funds or account restrictions without revealing the existence of a SAR or any internal suspicion. Maintaining that confidentiality is part of the firm’s broader anti-money laundering obligations.
Who it applies to
Everyone in a regulated firm, but the practical risk is highest among customer-facing staff who may be questioned directly by the subject of a report.