Cooley Assists Law Society Draft Guidance on Criminal Finance Act

London – September 8, 2017 – A Cooley team has assisted on the initiative to draft sector guidance issued by the Law Society of England and Wales on the new corporate offence of failing to prevent tax evasion.

The forthcoming law, effective September 30 as part of the Criminal Finances Act, makes companies and partnerships criminally responsible if they fail to prevent the criminal facilitation of tax evasion by a member of their staff, external agent or other ‘associated person’ – even where a business was not involved in the act or was unaware of it. The new law is applicable to UK firms and companies, but also can apply to non-UK firms and companies, and the tax evasion element of the offence encompasses foreign as well as UK tax. The purpose of the Law Society’s practice note is to draw lawyers’ attention to the potential issues raised by the new regime. The guidance can be viewed here.

“This new offence will further challenge lawyers managing criminal risk compliance for their firms,” said Cooley partner Louise Delahunty. “While existing risk management procedures will require some changes, we are hopeful that this guidance will ultimately provide practical and clear help to the profession. We welcome feedback and anticipate that the guidance will mature once the law is fully implemented.”

The Cooley team assisting the Law Society was led by Louise Delahunty and included Natasha Kaye and Victoria Anderson, director of risk and compliance.

About Cooley LLP

Clients partner with Cooley on transformative deals, complex IP and regulatory matters, and high-stakes litigation, where innovation meets the law.

Cooley has 900 lawyers across 12 offices in the United States, China and Europe.

This content is provided for general informational purposes only, and your access or use of the content does not create an attorney-client relationship between you or your organization and Cooley LLP, Cooley (UK) LLP, or any other affiliated practice or entity (collectively referred to as “Cooley”). By accessing this content, you agree that the information provided does not constitute legal or other professional advice. This content is not a substitute for obtaining legal advice from a qualified attorney licensed in your jurisdiction and you should not act or refrain from acting based on this content. This content may be changed without notice. It is not guaranteed to be complete, correct or up to date, and it may not reflect the most current legal developments. Prior results do not guarantee a similar outcome. Do not send any confidential information to Cooley, as we do not have any duty to keep any information you provide to us confidential. This content may be considered Attorney Advertising and is subject to our legal notices.