Ethics - Confidentiality question, law, activities, part, maintain

onelife1

Hi,
a quick (stupid) question about page 88 of CFAI book: it states that “if applicable law requires members and candidates to maintain confidentiality, even if the information concerns illegal activities on the part of the client”. However, I thought confidentiality can be overruled when info concerns illagal activities on the part of the client (main text), so applicable law has supremacy?
Thanks