Privileged Circumstances
Privileged Circumstances is the statutory exemption in POCA s.330(6) (and s.342 for tipping off) that relieves a 'professional legal adviser' of the duty to file a SAR where the information came to them in privileged circumstances — broadly, when seeking legal advice or in connection with legal proceedings. The exemption does not apply where the information is communicated with the intention of furthering a criminal purpose (the 'crime/fraud exception').
a solicitor who learns of suspicious activity from a client during privileged advice on a contemplated matter may be exempt from the SAR duty. The solicitor must still consider whether the information falls within the exception — and whether continuing to act exposes the firm to a substantive POCA offence regardless of the reporting carve-out.
How different roles use Privileged Circumstances
A good definition should change the next action for the person reading it.
Partner or director
Check whether this term affects acceptance risk, fee scope, supervision exposure, or sign-off responsibility.
ContinueMLRO or compliance lead
Map the term to evidence, escalation, monitoring, training, and inspection readiness.
ContinueClient-facing team member
Use the plain-English explanation to ask better client questions and write clearer file notes.
ContinueOther terms that go with Privileged Circumstances
Legal Professional Privilege is the common-law right of a client to refuse to disclose, or have disclosed, confidential communications with a lawyer made for the purpose of giving or receiving legal advice (advice privilege) or in connection with actual or contemplated litigation (litigation privilege). LPP is not a defence to dishonesty — it is overridden by the 'iniquity exception' where the communication is made to further a crime.
A Suspicious Activity Report is a formal disclosure made to the National Crime Agency (NCA) when a person in a regulated sector knows or suspects that someone is engaged in money laundering or terrorist financing. Filing a SAR provides a defence against money laundering offences. Failure to file when there is grounds to do so is itself a criminal offence.
Tipping off is the criminal offence under POCA s.333A of disclosing — to a client or any other person — that a SAR has been or is being filed, where the disclosure is likely to prejudice an investigation. It also covers disclosing the existence of a money laundering investigation. The offence carries up to 5 years' imprisonment. Limited defences exist, including disclosure within a regulated group, but they are narrow.
Before you treat Privileged Circumstances as handled
- Confirm which regulation, policy, or internal procedure the term maps to.
- Document the decision or evidence trail in the client file, not only in email or chat.
- Escalate where the term indicates higher risk, sanctions exposure, PEP status, suspicion, or missing evidence.
- Keep the wording consistent across onboarding, review notes, training material, and inspection packs.
Put Privileged Circumstances into practice with Certivus
Knowing the term is the first step. Certivus gives you the workflows — client intake, CDD, EDD, PEP and sanctions screening, audit-ready records — to apply it across every client.
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