Euro Pacific customer investigation
UK customers of Euro Pacific Bank are being investigated through one-to-one interventions as part of a campaign by HMRC to combat international tax crime and money laundering. This campaign follows a co-ordinated day of action from the Joint Chiefs of Global Tax Enforcement (J5), comprised of the tax authorities in the UK, USA, Canada, Australia and the Netherlands.
The Office of the Commissioner of Financial Institutions (OCIF) of Puerto Rico has issued a cease and desist order to Euro Pacific Bank in response to the bank failing to comply with minimum capital requirements and the violation of various regulations administered by the OCIF.
Forthcoming nudge letter campaign
During August 2022, HMRC will be asking several hundred of Euro Pacific's customers to review their tax affairs and report any irregularities through the Worldwide Disclosure Facility in their latest nudge letter campaign.
In our experience, HMRC send nudge letters when they have grounds to suspect that a person's tax affairs may not be in order and these letters should therefore not be ignored. Further action is likely to be taken by HMRC if recipients of the letter take no action.
If HMRC have made an error, it should be possible to correct it by prompt and substantive engagement with them. Equally, if it emerges that corrective action is required, open and early communication with HMRC will minimise the risk of HMRC imposing sanctions.