As of 30 September, two new criminal offences relevant to the offshore world are in force under the UK Criminal Finances Act 2017

• Failure to prevent the facilitation of UK tax evasion

• Failure to prevent the facilitation of foreign tax evasion

Five things you need to know...

Global reach – the law covers offshore and international firms as well as those in the UK 

Risk – all offshore financial services providers will automatically be considered “high risk”

Extra – new procedures may be needed beyond existing measures 

Unlimited – fines for breaking the law are unlimited, as is the potential reputational damage

Responsibility – liability not just for actions of employees but contractors/subsidiaries as well

Five things you need to do...

Assessment – consider additional financial crime prevention procedures, resources and skills

Review – periodic review of new measures and how well they are understood by your teams

Document – all steps needed to demonstrate that “reasonable prevention procedures” exist

Culture – a demonstrable culture of compliance in this area is critical

Seniority – directors and partners must demonstrate practical engagement on prevention in this area