Reporting entities may want to take notice of a recent UK case. In Canada, under the PCMLTFA, it is an offence to disclose the existence of an STR with an intent to prejudice a criminal investigation. The UK Proceeds of Crime Act provisions against tipping off are slightly different. One more piece of background: unlike Canada, lawyers in the UK are effectively reporting entities.

William Osmond is a 72 year old lawyer and his client was being investigated for corruption and money laundering in respect of a real estate transaction for which the client had lodged £4 million into Osmond’s trust account. The Serious Fraud Office sought information from Osmond and warned him not to tip off his client. Osmond immediately called his client to discuss the investigation. Osmond was convicted of tipping off and received a 9 month sentence, suspended for 18 months. He was denied leave to appeal.

Tipping off provisions exist for a reason and wrongful disclosures can have consequences.

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