The Tipping Off Offence
Section 333A of the Proceeds of Crime Act 2002 creates the offence of "tipping off." A person commits this offence if they disclose to any person that:
- A SAR has been made, is being made, or is likely to be made; or
- An investigation into allegations of money laundering is being contemplated or carried out
AND the disclosure is likely to prejudice any investigation that might be conducted following the SAR.
What Constitutes Tipping Off
Tipping off can occur directly or indirectly. It does not require the reporter to explicitly say "I've filed a SAR." Examples include:
- Telling a customer their account is "under review for compliance reasons" in a way that implies a SAR
- Warning a customer not to make certain transactions "for now"
- Informing a colleague outside the reporting chain that a SAR has been filed
- Delaying a transaction and explaining you are "waiting for authorisation" in circumstances that reveal the existence of a SAR
- Social media posts or informal conversations that hint at an investigation
Even well-intentioned disclosures can constitute tipping off — for example, a relationship manager who warns a long-standing client out of a sense of loyalty. The Law Society warns that intent to help does not negate the offence.
Safe Harbour Protection
The law provides safe harbour protection for good-faith reporters. A person who makes a SAR in good faith is protected from:
- Civil liability for breach of confidentiality
- Criminal liability for any disclosure made in the SAR itself
- Disciplinary action by their employer
Employees should never hesitate to report for fear of being wrong. The legal system protects honest reporters; it punishes those who fail to report or who tip off suspects.
The Consent Regime (DAML)
The consent regime is the mechanism by which a person seeks permission from the NCA to proceed with a transaction that may involve criminal property. By seeking consent via a DAML request, the person obtains a defence against money laundering charges under sections 327-329 POCA. Without consent, proceeding with a suspicious transaction could expose the person to criminal liability.
Mixed Assets Provision
Where criminal property has been mixed with legitimate funds, the entire mixed fund may be treated as criminal property for the purposes of POCA. This means that if a customer deposits GBP 50,000 of legitimate income into an account already containing GBP 10,000 of criminal proceeds, the entire GBP 60,000 may be subject to restraint or confiscation.
True or False?
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You can tell your line manager that you have filed a SAR about a customer, as long as they are also in the regulated sector.
If you suspect money laundering but are not 100% certain, you should wait until you have proof before filing a report.
Telling a customer that their account is "under review" because you have filed a SAR could constitute tipping off.
If you file a SAR in good faith and it turns out the customer was completely innocent, you can be sued for breach of confidentiality.
The maximum penalty for the principal money laundering offences (ss.327-329 POCA) is 5 years' imprisonment.
If criminal proceeds are mixed with legitimate funds in an account, only the criminal portion can be treated as criminal property.
Once you have filed an internal report with the MLRO, you have fulfilled your legal obligation to disclose.
If the NCA does not respond to a DAML request within 7 working days, you must continue to hold the transaction indefinitely.