The UK Criminal Finances Act 2017 (the CFA) has been in force since 30 September 2017. With its extra-territorial ramifications, it affects not only businesses in the UK, but also those with a UK nexus, including branch offices or those doing business in the UK. Given the potential for severe penalties, businesses have to be astute to the challenges and effects of the CFA, particularly if they are operating in the financial services and accountancy sectors, are fiduciaries and trustees, and/or wealth managers.
This article will look in particular at two sections of the CFA: sections 45 and 46, heralding the newly-focused corporate criminal offences of failure to prevent facilitation of tax evasion, and section 1, introducing powers for HMRC and other UK enforcement bodies to obtain an Unexplained Wealth Order (UWO), and an associated interim freezing order (IFO) in respect of property owned by certain individuals.
