Crime, fraud and investigations 2018: FCA thematic review

The introduction of new offences of failing to prevent the facilitation of tax evasion may trigger the Financial Conduct Authority (FCA) to examine institutions’ controls.

In brief

  • HM Revenue and Customs (HMRC) expects companies to have carried out risk assessments in relation to failing to prevent the facilitation of tax evasion since this became a criminal offence in 2017.
  • The FCA is likely to conduct a thematic review of financial institutions’ risk assessments and controls.
  • We expect the timing of this to be in the later part of 2018.

In 2018, we believe there is a prospect that the FCA will carry out a thematic review into regulated firms’ systems and controls designed to prevent the facilitation of tax evasion.

New criminal offences

As of 30 September 2017 and pursuant to the Criminal Finances Act 2017, two new corporate offences, modelled on the UK Bribery Act, came into force. These offences criminalise companies that fail to prevent

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