Confidentiality v Justice: The effect of the No Tipping Off rule

Abstract

The “no tipping off” (NTO) rule prevents legal practitioners from disclosing to their clients that they have filed a suspicious transaction report (STR) with the Financial Information Centre. In terms of professional conduct, this creates a dilemma between, on the one hand, fulfilling the duty to report possible money laundering and other suspicious activity and, on the other, the duty to maintain trust with the client and act in good faith. This dilemma means attorneys face possible consequences from both sides of the situation by choosing one over the other. Full transparency between legal practitioners and clients is paramount. This article examines this underexplored question and provides recommendations for potential solutions.