The United Kingdom’s Criminal Finances Act, 2017 (the “Act”), which came into force on the 30th of September 2017, is a significant addition to the UK’s legislative arsenal designed to tackle the evasion of both UK and non-UK taxes. The Act criminalizes the failure of corporations and partnerships to prevent those acting for or on their behalf from assisting third parties to evade taxes.
Although the Act is UK law, it has been crafted to have extraterritorial effect and thus its impact may well be felt by all corporations and partnerships with a UK nexus, including those in The Bahamas and the Cayman Islands.