SECTION 25A OF OSCO AND DTROP
Confidentiality after a Suspicious Transaction Report
The “tipping-off” offence is a serious criminal offence in Hong Kong designed to protect the integrity of financial investigations. Section 25A(5) of both the Organized and Serious Crimes Ordinance (OSCO, Cap. 455) and the Drug Trafficking (Recovery of Proceeds) Ordinance (DTROP, Cap. 405) prevents a person who knows or suspects that a statutory disclosure has been made from revealing any matter likely to prejudice an investigation that might follow that disclosure.
The offence may arise where a person alerts the subject of an STR or an associate that financial activity has been reported. The prohibition is directed at the prejudicial disclosure; it does not make every communication with a customer after an STR automatically criminal.
Please see our JFIU and Suspicious Transaction Reports page for more information ↗KEY ELEMENTS OF THE OFFENCE
Three matters must be established
The prosecution must prove the required awareness, disclosure and likely prejudicial effect.
A statutory disclosure has been made
The defendant must know or suspect that a disclosure has been made under section 25A—for example, that a Suspicious Transaction Report has been filed with the JFIU.
Information is revealed to another person
The defendant must disclose to another person a matter connected with the earlier disclosure. The recipient may be the subject of the STR, an associate or any other person.
The disclosure is likely to prejudice an investigation
The disclosed matter must be likely to prejudice an investigation that might be conducted following the STR. The statutory test concerns likely prejudice; proof that the investigation was actually defeated is not required.
MAXIMUM PENALTY ON CONVICTION UPON INDICTMENT
3 years' imprisonment and a fine of HK$500,000
The offence is created by section 25A(5); the applicable penalties are prescribed by section 25A(8).