HMRC investigating customers of Euro Pacific Bank

HMRC has started investigating UK customers of the bank through criminal investigations, enquiries and a nudge letter campaign.

Background

Euro Pacific Bank was based in St Vincent & the Grenadines.  The bank moved to Puerto Rico in 2017 as that country does not report under the Common Reporting Standard (CRS). 

Following an unprecedented global investigation by the Joint Chiefs of Global Tax Enforcement (the J5), the operations of the bank were suspended on 30 June 2022 amid allegations of Money Laundering and tax evasion.  A cease and desist order was issued by the Officer of the Commissioner of Financial Institutions (OCIF) following the bank’s non-compliance with its minimum capital requirements and other various violations.

HMRC has already commenced a number of criminal investigations.  HMRC’s nudge letter campaign has also started and focuses on hundreds of UK customers of Euro Pacific.  This is HMRC’s latest effort in a series of campaigns to tackle international tax crime and money laundering.

What is a nudge letter?

HMRC send nudge letters when they have reasonable grounds to believe that an individual has not paid the right amount of tax.  The letters inform an individual that HMRC has received information through the UK’s tax information exchanges agreements with other countries.  The letter asks the individual to review their tax position and to bring their affairs up to date using the Worldwide Disclosure Facility. 

Recipients of a nudge letter will be encouraged to seek professional advice right away.

Take action

HMRC are likely to undertake further compliance activities if no action is taken, so these letters should not be ignored.  If you have links to Euro Pacific Bank or if you have received a nudge letter from HMRC, you should seek specialist advice as quickly as possible. 

If HMRC has already opened an enquiry, or commenced a COP9 investigation, or if you think you have a disclosure to make, we can help.

It may not always be the case that tax has been underpaid in the UK.  If the right amount of tax has not been paid, co-operating with HMRC will mitigate any potential penalties and minimise the risk a criminal investigation. 

We have a team of highly experienced ex-HMRC inspectors who can review your individual circumstances and give you specialist advice.  We can deal with HMRC on your behalf, support you through the process and help you to put things right quickly and efficiently. Get in touch with our team today.