UK financial rules make it a crime to warn someone about a money laundering investigation or a Suspicious Activity Report (SAR) filed against them. This offence is called “tipping off.” It involves sharing information that could hinder a criminal investigation or interfere with orders to freeze assets under the Proceeds of Crime Act 2002 (POCA). Such disclosures threaten the authorities’ ability to track and recover illegal assets.
The legislative mandate of “relevant authorities”, which include the National Crime Agency (NCA), the Serious Fraud Office (SFO), Her Majesty’s Revenue and Customs (HMRC), and the Financial Conduct Authority (FCA), is to exercise functions in the way best calculated to contribute to the reduction of financial crime. Tipping off fundamentally undermines this mandate. As stipulated in Section 2A (4), crime reduction is generally best secured through criminal investigations and proceedings. Unauthorised disclosures compromise the efficacy of these proceedings, directly obstructing the authorities’ ability to reduce crime.
Top Key Takeaways
- Tipping off is a criminal offence when someone discloses information about a SAR or money laundering investigation to a suspect, allowing them to hide assets or destroy evidence.
- Penalties range from fines to five years imprisonment depending on the offence, with violations including revealing restraint orders or alerting individuals that investigations have commenced.
- Firms must restrict SAR information on a “need-to-know” basis and train staff to cease Customer Due Diligence without alerting customers when suspicion arises.
- When seeking NCA consent, use pre-approved neutral explanations for transaction delays without mentioning investigations or money laundering.
- Legal defences under POCA 2002 permit controlled information sharing between employees and between institutions when solely for preventing money laundering.
Which Actions Are Considered Tipping Off?
For institutional risk management, identifying the specific legal triggers of tipping off is vital to reducing the risk of default and regulatory sanctions.
Under POCA 2002, the following actions constitute a breach of information integrity and constitute tipping off:
-
Disclosure of Restraint Orders
Under Section 41 of POCA 2002, the Crown Court may issue a restraint order prohibiting a specified person from "dealing with any realisable property." Disclosing the existence of this order to the suspect or a third party enables them to circumvent the prohibition, defeating the order’s purpose.
-
Prejudicing Investigations
Under POCA, a breach occurs when a disclosure alerts a party to a state that satisfies the conditions mentioned in Section 40. Specifically, revealing that a "criminal investigation has been started" (Section 40(2)(b)) or that there are "reasonable grounds to suspect" that an alleged offender has benefited from criminal conduct (Section 40(2)(b)) also constitutes a breach. These disclosures satisfy the conditions required for the court to exercise its powers, and alerting the suspect facilitates the unauthorised dealing with realisable property before the court can intervene.
-
Interference with Information Requests
Under Section 18 of POCA 2002, the court may order a defendant to "give it information" to assist in carrying out its functions. Disclosing that such an order has been issued alerts the suspect to the court's specific investigative focus, potentially allowing the destruction of evidence or the modification of financial records.
What Are the Core Indicators of Tipping Off Under POCA 2002?
What Is the Process for Reporting Suspected Tipping Off?
To ensure statutory adherence and safeguard against regulatory scrutiny, UK financial institutions must maintain a structured reporting line centred on the “nominated officer” required under Regulation 21(3) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR). While Section 333A of POCA 2002 establishes “tipping off” as a criminal offence where a disclosure is likely to prejudice an investigation, the internal identification of such breaches is the responsibility of the firm’s compliance function. When a financial institution identifies a potential breach of confidentiality or tipping off, it must notify the NCA, which is indeed a “relevant authority” tasked with the reduction of crime under Section 2A, but this is specifically done through channels such as the UK Financial Intelligence Unit (UKFIU)’s SAR Confidentiality Breach Line, rather than standard SAR reporting channels.
What Are the Penalties for Tipping Off?
Tipping Off in the Regulated Sector (Section 333A POCA 2002): Regulated Sectors like credit and financial institutions, auditors, external accountants, tax advisers, insolvency practitioners, independent legal professionals, trust or company service providers, estate agents, high value dealers, and casinos are subject to mandatory anti-money laundering obligations. It is a crime for professionals in regulated industries to inform a customer that a SAR has been filed or that they are being investigated, as this warning could allow the suspect to hide evidence or otherwise harm the investigation.
The punishment for this offence ranges from a fine or up to three months in jail for minor cases, rising to a maximum of two years in prison for serious convictions.
What Are the Best AML Compliance Solutions to Prevent Tipping Off?
To reduce the risk of committing a tipping-off offence under Section 333A of POCA 2002, firms must implement specific “safe harbour” strategies and reliable operational controls:
Helpful Resources
- These Measures in UK Finance Bill 2025-26 Will Change Tax Advisory Forever: UK Finance Bill 2025-26: New Rules for Tax Advisers
- Here’s Everything You Need to Know About Suspicious Activity Report (SAR) in Anti-Money Laundering: Suspicious Activity Reporting: Key Insights for Businesses | FigsFlow
- These Risks Are Silently Killing Accountancy Service Providers: Risks for UK Accountancy Service Providers: 2026 Compliance Guide
- Everything You Need to Know About Money Laundering in One Place: What Is Money Laundering? Definition & Examples| FigsFlow
- This Single Tool Helps Accountant Stay Compliant: How is Enhanced Due Diligence (EDD) Simplified in 2026?
Conclusion
“Tipping Off” represents one of the most critical and sensitive boundaries within the AML framework. Under Section 333A of the POCA 2002, it operates as a necessary legal firewall that prohibits disclosing the existence of a SAR or a money laundering investigation to a subject, thereby ensuring the integrity of law enforcement operations is not compromised.
For regulated entities, compliance necessitates a subtle operational balance between transparency with clients and statutory secrecy. Professionals must rigidly adhere to internal procedures, such as utilising the “safe harbour” under Regulation 28(15) of the MLR 2017 to cease Customer Due Diligence without alerting the client. Ultimately, preventing tipping off is essential not only to avoid severe criminal penalties but also to preserve the intelligence value of SARs and prevent criminals from dissipating assets before authorities can act.
Frequently Asked Questions (FAQs)
Tipping off is a criminal offence that occurs when someone alerts or warns an individual that they are under investigation for money laundering or terrorist financing, or that a Suspicious Activity Report (SAR) has been filed about them. This disclosure compromises law enforcement investigations by giving suspects the opportunity to hide evidence, move assets, or take other actions that obstruct the authorities’ ability to investigate and prosecute financial crimes.
Under UK law, tipping off offences carry significant penalties. For regulated sector offences under Section 333A of POCA 2002, convictions can result in up to two years imprisonment. More serious offences under Section 342 (prejudicing an investigation) carry penalties of up to five years imprisonment, a fine, or both on indictment. Summary convictions typically result in shorter prison terms of three to six months and/or fines.
The reporting threshold for deposit-taking bodies under Section 339A of POCA 2002 is currently £1,000. This means certain financial institutions are not required to file a SAR if the total value of property involved in suspicious activity does not exceed this amount. This threshold was increased from £250 to £1,000 by the Proceeds of Crime (Money Laundering) (Threshold Amount) Order 2022.
POCA stands for the Proceeds of Crime Act 2002, which is the primary UK legislation governing the recovery of criminal assets and anti-money laundering obligations. It establishes the legal framework for confiscation orders, restraint orders, civil recovery, and the reporting of suspicious activity. POCA empowers courts and law enforcement agencies to seize and confiscate assets derived from criminal conduct.
Common examples include: a bank compliance officer informing a customer that their account has been flagged for suspicious activity or that a SAR has been submitted to the NCA; a solicitor telling a client that authorities are investigating their property transactions for potential money laundering; or an accountant revealing to a business owner that their financial records are under review by law enforcement for suspected criminal proceeds.
The tipping off offence exists to protect the integrity of money laundering and terrorist financing investigations. By criminalising unauthorised disclosures, it prevents suspects from being alerted to ongoing investigations, which would allow them to destroy evidence, move or conceal assets, intimidate witnesses, or otherwise obstruct law enforcement efforts. This ensures that authorities can effectively trace, freeze, and recover criminal proceeds while building strong cases for prosecution.
