header-logo header-logo

Risky business

nlj_7798_henderson

As a result of the Criminal Finances Act 2017, there are new risks for directors and officers and their insurers. Jonathan Newbold & Marlene Henderson investigate.

The recent implementation of the Criminal Finances Act 2017 (CFA) marks the latest legislative crackdown on corporate financial crimes. The CFA has extended the powers of law enforcement agencies to recover the proceeds of crime (including tax evasion, money laundering and terrorist financing) and introduced a strict corporate accountability. The additional scrutiny on corporations and their senior management team is likely to have a knock on effect for D&O policy holders and their insurers.

Criminal Finances Act – what is it?

The CFA, which came into force on 30 September 2017, is fine tuning the approach towards financial crime and extending the powers set out in the Proceeds of Crime Act 2002. The driving force behind the CFA was growing concern about levels of tax evasion and a lack of accountability by senior management.

What does the Criminal Finances Act 2017 cover?

In short, and most significantly

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Clyde & Co—Suriya Ashok

Clyde & Co—Suriya Ashok

Clyde Co strengthens energy transition and construction offering with hire of Suriya Ashok

Jurit—Nicole Gallop Mildon

Jurit—Nicole Gallop Mildon

Jurit appoints rare dual-qualified lawyer to expand Anglo-French private wealth expertise

NEWS
The Financial Reporting Council’s revised Audit Enforcement Procedure will alter the balance of power in corporate investigations
A telecoms operator may be able to hold over under the Landlord and Tenant Act 1954, yet still be unable to secure a renewal: an outcome described as a legal ‘paradox’

Safety fears do not automatically justify shutting an interested person out of a statutory will application

Consumer credit law is heading for its biggest shake-up in 50 years, with the Consumer Credit Act 1974 set to yield much of its detailed statutory machinery to FCA rules
The Supreme Court has settled a long-running dispute over part-time workers: unfavourable treatment need be a significant or effective cause, not the sole cause
back-to-top-scroll