ECSH34205 - Intelligence Reports
When carrying out a compliance check under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), you may come across information regarding criminal behaviour or other activity which needs reporting to another HMRC team and/or law enforcement agency, for example a risk of tax evasion or breach of a legal or statutory obligation.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Although tax evasion is strictly a criminal offence, it is often subject to a civil rather than a criminal investigation by HMRC. In practice, it may not be possible to identify tax evasion whilst carrying out your usual checks to evaluate compliance with MLR 2017. You must not under any circumstances attempt to obtain additional details for any other purpose other than ensuring the business is compliant with MLR 2017. However, if you do suspect fraud or criminal activity is being carried out by the business, please follow the guidance for criminal prosecution and suspected fraud referrals. This includes offences under the Proceeds of Crime Act 2002 (POCA) and section 330 failure to disclose: regulated sector.
It is important to draw a distinction between risks associated with the activity of the supervised business and risks associated with its customers. For example, another reason for submitting an IR would be when a business has customers that should be registered for anti-money laundering supervision but are not, where the subject of the report is the unregistered business.
You therefore may need to raise a number of IRs resulting from the same compliance check.
Remember, if a business provides information regarding another business/third party, this must be reported as HumInt.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)