Criminal Finances Bill

Companies which fail to prevent tax evasion may be subject to a criminal offence, under new anti-corruption legislation.

The Criminal Finances Bill, introduced in Parliament by the Home Secretary last week, aims to tackle money laundering and corruption, and recover the proceeds of crime and counter terrorist financing.

It introduces “unexplained wealth orders”, which can be authorised by the High court and will force persons suspected of serious crime to explain where their wealth came from or risk having it seized. Law enforcement officers will be given powers to seize precious metals and stones and works of art as well as illicit funds in bank accounts.

Regulated bodies will take steps to more widely share information, such as the data on financial transactions. Disclosure orders will be extended to money laundering and terrorist financing cases, requiring disclosure where someone is suspected of having information or documents relevant to an investigation.

Jonathan Pickworth, white collar crime partner at White & Case, said: “Twenty years ago the focus of anti-money laundering law was the proceeds of drug trafficking and the laundering of cash. 

“These days, the focus has shifted to PEPs (politically exposed persons) and grand corruption, particularly for the City of London. The introduction of unexplained wealth orders will continue this focus on PEPs, though the orders will also be available regarding serious crime.”