INTRODUCTION

In April 2016, the Government published an action plan (‘Plan’) to counter the money laundering and terrorist financing risks faced by the UK, as identified in the national risk assessment published in October 2015.

The Plan focused on the following priorities:

1. A more robust law enforcement response to the risks, including building new capabilities in the UK’s law enforcement agencies and creating tough new legal powers to enable the disruption of criminals and terrorists;
2. Reforming the supervisory regime to ensure that it is consistent, effective and brings companies who facilitate or enable money laundering to task; and
3. Increasing the international reach of UK law enforcement agencies and international information sharing to tackle money laundering and terrorist financing threats.

OTHER DRIVERS

1. The Plan (and resulting bill and act), was given impetus by the revelations of the Panama Papers, is the latest attempt to tackle corruption and serious organised crime in the UK.
2. Coming less than a decade since the implementation of the Bribery Act, it will bring a major change to the way law enforcement agencies deal with persons they suspect of harbouring funds gained from criminal activity.
3. It involves the most substantial changes to the UK’s money laundering regime since POCA was enacted in 2002, and increases the UK’s focus on tax transparency.
4. Although the facilitation offences are only likely to be brought into force in the Autumn, firms should now begin internal reviews of their policies and procedures to make sure that their businesses are ready for the new facilitation offences before they are brought into force.

THE ACT

The Bill received royal assent on 27 April 2017, becoming the Criminal Finances Act 2017. [the act]

However, none of the substantive provisions of the Act are yet in force, and require commencement orders to be made, expected in the Autumn.

The Act is divided into 4 parts:

— Part 1 – Changes to the proceeds of crime, money laundering, civil recovery, enforcement powers and related offences.

— Part 2 – Extends money laundering/ asset recovery powers to terrorism investigations.

— Part 3 – New corporate offences of failure to prevent the facilitation of tax evasion.

— Part 4 – Consequential amendments.

CMS in the linked briefing below discuss the most salient parts of the Act below.

http://bit.ly/2tVvMBI