ECSH24000 | Criminal Finances Act 2017

The Criminal Finances Act 2017 (CFA 2017) makes important amendments to the Proceeds of Crime Act 2002, Terrorism Act 2000 and the Anti-terrorism Crime and Security Act 2001.

It gives law enforcement agencies and partners further capabilities and powers to recover the proceeds of crime, tackle money laundering, tax evasion and corruption, and combat the financing of terrorism.

CFA 2017 introduces corporate criminal offences of failing to prevent tax evasion which may apply to businesses who facilitate this criminal activity. This means that businesses can be criminally liable where they fail to prevent those who act for, or on behalf of, the business from criminally facilitating tax evasion.

It is a defence for a business to prove that, when the evasion offence occurred, it had in place such prevention procedures as it was reasonable in all the circumstances to expect the business to have in place.

HMRC has published guidance to help businesses put these processes and procedures in place to prevent persons associated with the business from criminally facilitating tax evasion.