The Criminal Finances Act 2017 came into effect on the 30th September 2017, but what does it mean to you as a recruiter? Read on as we take a look at the act, whether you will be affected and what you can do to cover yourself and your agency.
What is the Criminal Finances Act 2017?
The Criminal Finances Act 2017 is an updated overhaul of the Proceeds of Crime Act (POCA) 2002. The updated Act came into effect on the 30th September 2017 and its aim is to aid the UK government’s ability to tackle and spot money laundering.
Whilst the POCA focused on money laundering and confiscation regime, the updated Act features a new offense which is relevant to professionals who provide tax advice in any form.
You can read the full Criminal Finances Act 2017 here.
How will the Criminal Finances Act 2017 affect recruiters?
Perhaps the most prominent clause in the act for recruiters is:
45. Failure to prevent facilitation of UK tax evasion offences
(1) A relevant body (B) is guilty of an offence if a person commits a UK tax evasion facilitation offence when acting in the capacity of a person associated with B.
This means that businesses will be made liable for any employees who commit a UK tax evasion offence whilst performing a service for that business, even if the business has no idea that the crime is being committed.
For example, this could mean that if you recruit an employee to work with an end client and they commit a crime of tax evasion, you as the recruiting body may be considered guilty of committing the offense.
Covering yourself as a recruiter
Hopefully, you won’t ever find yourself in the situation where this act has an effect on you but it is worth taking a few precautionary measures should an issue arise. Familiarising yourself with the legislation and ensuring that the umbrella companies you work with are fully compliant are great starting points. If you don’t already, then having a preferred supplier list (PSL) can be a great way to ensure you are always working with compliant umbrella companies. You can find out more about PSL’s on our guide to preferred supplier lists.
At Parasol we have over fifteen years’ experience of being a fully compliant umbrella company and we pride ourselves on knowing all the relevant legislation inside out. We’re fully compliant and are proud to be members of industry bodies such as APSCo and the FCSA.