Euro Pacific Bank was previously based in St Vincent & the Grenadines. When that territory entered the common reporting standard in 2017, the bank moved to Puerto Rico. The Officer of the Commissioner of Financial Institutions (OCIF) issued a cease and desist order in response to the bank’s non-compliance with its minimum capital requirements and various violations of laws and regulations administered by OCIF.
HMRC’s campaign follows a co-ordinated day of action by members of the Joint Chiefs of Global Tax Enforcement (J5) in 2020. The J5 was formed in 2018 by the tax authorities in the UK, USA, Canada, Australia and the Netherlands to combat international tax crime and money laundering. The group shares intelligence and expertise through joint operations to tackle such activity.
Known as Operation Atlantis, the 2020 day of action was the first major operational activity for the J5. Each country independently executed enforcement actions consistent with legal requirements in their countries. These actions included intelligence and information gathering, search warrants, interviews, production orders and subpoenas.
HMRC’s nudge letter campaign is due to commence in August 2022. It will focus on several hundred customers of Euro Pacific, asking them to review their tax affairs and come forward through the Worldwide Disclosure Facility to inform HMRC of any irregularities. Recipients of the letter will be encouraged to seek representation from a specialist in this area where they don’t already have one.
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
More support on tax
ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.Sign up for TAXwireJoin the Tax Faculty
The future of tax after COVID
As digital technologies transform society, the UK government is grappling with balancing the books while ensuring its tax system is fit for purpose. Join us as we take a look at the issues and challenges facing the tax system.Read more
More from the Tax Faculty
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.