Tightening of the UK`s approach to tax evasion and other financial crimes. The Creminal Finances ct 2017

Notable recent changes in the law include the power to apply for, including without notice, Unexplained Wealth Orders against politically exposed persons or those involved or associated with serious crime where there are reasonable grounds for suspecting that such persons hold assets disproportionate to their known income. Once an Unexplained Wealth Order has been issued, the person holding the property must explain the legitimate source of ownership, without which the property can be considered ‘recoverable’ as if it were the proceeds of crime.

Another notable change includes corporate liability for a failure to prevent tax evasion, including potentially for tax evasion in jurisdictions other than the UK, committed by employees or business associates without the company’s knowledge. The act provides that liability can potentially be avoided as long as the company can show that it had ‘reasonable prevention procedures’ in place that identify and mitigate tax evasion facilitation risks.

See: The Criminal Finances Act 2017