Compliance·core

Tipping-Off

The offence of alerting a person that they are, or may be, the subject of a suspicious activity report or money-laundering investigation.

Definition

Tipping-off is a criminal offence in many AML regimes that prohibits disclosing information likely to prejudice an investigation, in particular telling a customer that a suspicious activity report has been made about them or that they are under scrutiny. The rule exists so that suspects cannot move funds or destroy evidence once reporting begins. It creates a careful balance for front-line staff: they must handle a flagged customer normally enough not to reveal suspicion, while still following internal escalation. Related offences can also cover prejudicing an investigation. Exactly what may and may not be said, and to whom, is tightly constrained.

Worked example

After filing a suspicious activity report, staff must not tell the customer why a withdrawal is delayed in terms that reveal the report exists, as doing so could amount to tipping-off.

Why it matters

For learners it explains why AML processes are handled so discreetly. For professionals, tipping-off is a personal criminal risk, so training front-line staff on what they may say is essential.

Suspicious Activity Report Money Laundering Reporting Officer (MLRO)Nominated Officer Anti-Money Laundering

Note: The precise definition, exceptions and penalties for tipping-off vary by jurisdiction.