Comment by adaml_623

Anti Money Laundering legislation normally lists an offence known as 'tipping off'. If during a transaction a bank or regulated financial agent becomes suspicious of a client or a transaction then they are not only obligated to report it to the authorities but they are explicitly prevented from communicating their suspicions in any way to the client.

If the client is asking why the transaction or payment is delayed while the authorities investigate then the regulated company cannot mention the real reason and have to try and make up a lie or explain that some other entity is responsible for the delay and they don't know the real reason.

This is true in the UK at least and I assume you can see how it relates to the Warrant Canary concept. I will add that the tipping off offence is backed up with the threat of jail time for staff and directors in a company.