What term describes the illegal act of notifying a customer about a payment being held for sanctions checks?

The term that describes the illegal act of notifying a customer about a payment being held for sanctions checks is tipping off. Tipping off occurs when someone associated with a financial institution or similar entity informs a customer that their transaction is being monitored or held due to suspicion of illegal activity, such as money laundering or potential sanctions violations. This action can jeopardize ongoing investigations and is considered a breach of regulatory requirements designed to prevent crime and maintain the integrity of the financial system.

Understanding the implications of tipping off is crucial, as it underscores the importance of confidentiality within financial institutions when dealing with suspicious transactions. Financial institutions are obligated to follow strict protocols to avoid alerting customers about ongoing investigations or compliance issues.