Criminal Finances Act 2017

From September 2017 new UK legislation - the Criminal Finances Act 2017 - requires that incorporated bodies (usually companies) and partnerships must act to prevent potential criminal facilitation of tax evasion by persons associated with them.

Failure to prevent this occurring will now constitute a criminal offence, unless it is possible to demonstrate that ‘reasonable prevention procedures’ are in place.

The term ‘associated with’ the organisation is drawn broadly and encompasses anyone who provides services for, or on behalf of, the corporate. This includes not only employees but also suppliers, advisers, agents, intermediaries and contractors.

Ideally, your response to the new offences can sit within existing governance, risk assessment and due diligence frameworks, with amendments made where necessary to address the new requirements. In cases where you do not already have an existing and sufficiently robust risk management framework in place, such a framework will need to be developed.

RSM support

We have a developed methodology to help you through each element of the process. This is supported by a multi-disciplinary team of legal, tax, risk management, governance, fraud prevention and due diligence specialists, each with the relevant experience to deal with the various elements of the new legislation.

Read the full report

Over the past decade, there’s been a major shift in our understanding of what it means to be a well-run organisation. Financial metrics are no longer the only yardsticks of success. Today there is a widespread expectation that you’ll also act with integrity to become a force for good. Read more about how good governance should be top of mind and explore best practice tips here.