The UK Criminal Finances Act 2017: Implications For Offshore Financial Providers

In September 2017, the UK's Criminal Finances Act 2017 (the Act) came into force, creating two new offences:

• Failure to prevent the facilitation of UK tax evasion
• Failure to prevent the facilitation of foreign tax evasion.

The Act applies to both UK and overseas persons. Offshore financial service providers, in particular, are deemed 'high risk' and, as such, the Act has real implications for offshore financial advisors, trustees, accountants and law firms as well as their professional indemnity insurers. Coupled with unlimited fines and onerous compliance requirements, offshore advisors and their insurers should pay close attention to the new liability exposures resulting from the Act.