UK Court of Appeal Confirms Broad Scope of 'Tipping Off' Offence
The first appellate ruling on a key anti-money laundering provision clarifies that disclosing a specific, non-public inquiry to a client is illegal tipping off, even if the broader investigation is already public.
In R v Osmond, the UK Court of Appeal has issued its first-ever judgment on the 'tipping off' offence under the Proceeds of Crime Act 2002 (POCA), upholding the conviction of a solicitor for informing a client about an SFO money laundering inquiry. This ruling provides critical guidance for all regulated firms, confirming the offence has a very broad scope.
The court established that disclosing a specific, non-public inquiry constitutes tipping off, even when it is part of a larger, publicly known investigation. It also affirmed that the offence is committed if a disclosure is merely likely to prejudice an investigation; the prosecution does not need to prove actual harm resulted. Crucially, the court found that information from an investigator is received 'in the course of business' based on the professional's capacity (e.g., as a solicitor), not its source. This decision highlights the serious risks for professionals and firms, especially given new laws extending corporate criminal liability for offences committed by senior managers. Firms should ensure robust internal escalation procedures are in place for any contact from law enforcement to avoid inadvertent criminal violations.