What is tipping off?
Tipping off is the criminal offence of revealing that a suspicious activity report (SAR) has been made, or that a money laundering investigation is being considered or under way, where that is likely to prejudice the investigation. In the UK it is set out in section 333A of the Proceeds of Crime Act 2002 (POCA). The maximum sentence is 2 years in prison.
It applies to information you got in the course of business in the regulated sector, so it covers estate and letting agents, accountants, solicitors and financial advisers.
The UK rules
| Rule | What it says | Where |
|---|---|---|
| Disclosing a report | Offence to disclose that a report has been made to a nominated officer, the NCA, the police or HMRC, if the disclosure is likely to prejudice any resulting investigation | POCA s333A(1) |
| Disclosing an investigation | Offence to disclose that an investigation into money laundering is being considered or carried out, if that is likely to prejudice it | POCA s333A(3) |
| Penalty | Up to 3 months in prison or a fine (or both) in a magistrates’ court; up to 2 years in prison or a fine (or both) on indictment | POCA s333A(4) |
| Permitted disclosures | Including disclosures to your AML supervisor, for detecting, investigating or prosecuting crime, and by a legal or relevant professional adviser to a client to dissuade them from committing an offence | POCA ss333B–333D |
| No intent to prejudice | No offence if you did not know or suspect the disclosure was likely to prejudice an investigation | POCA s333D(3)–(4) |
The Terrorism Act 2000 contains an equivalent offence for terrorist financing reports. Some guidance quotes a maximum of 5 years for tipping off; the statute in force says 2 years on indictment.
Source: POCA section 333A; section 333D.
What this means for a small firm
- Say less, not more. If a client asks why a transaction is delayed, give a neutral, truthful answer, such as “we are completing our compliance checks”, without mentioning a report or suspicion.
- Keep SARs away from the client file. Store internal reports and SAR records separately, so they are not sent out by mistake.
- Brief everyone who talks to clients: negotiators, bookkeepers, receptionists. They are usually the first people a client asks.
- Ask the MLRO before you speak if you are unsure what you can say, especially while a DAML request is pending.
- Carry on normal checks. Asking for documents as part of your usual due diligence is not tipping off, as long as you do not reveal the report.
Frequently asked questions
Is asking a client for more information tipping off?
Not in itself. Normal due diligence questions are part of your job. The offence is revealing that a SAR has been made or an investigation is under way, in a way likely to prejudice it.
What is the maximum penalty for tipping off?
Up to 2 years in prison, a fine, or both, on conviction on indictment under POCA s333A(4). In a magistrates’ court the maximum is 3 months, a fine, or both.
Can I tell my AML supervisor about a SAR?
Yes. A disclosure to the authority that supervises you under the Money Laundering Regulations is a permitted disclosure under POCA s333D.
What do I tell a client while waiting for a DAML?
Something neutral and true, such as that your checks are still in progress. Agree the wording with your MLRO, and take legal advice if the client presses.
How AML Buddy helps
AML Buddy does not handle SARs or reports. Its role is the client check before the work starts: identity, address, sanctions, PEP and adverse media through one secure link, with a timestamped report for your file. See pricing.