HMRC investigates UK resident customers of Euro Pacific International Bank

UK resident customers who held bank accounts with Euro Pacific International Bank still face tax investigations and possible criminal prosecution two years after the bank was effectively wound up.

Background

The Puerto Rico Office of the Commissioner of Financial Institutions (OCIF) issued a Cease and Desist Order and suspended the operations of the bank on 30 June 2022 amid Money Laundering and tax evasion allegations. HMRC (and other tax authorities around the world) now have information to target any UK resident customers and their companies, who may have used accounts with ‘Euro Pacific International’.

What action should you take?

Any such individuals, businesses or companies should consult immediately with Crowe’s Tax Resolutions team so that immunity from prosecution may be negotiated via the Contractual Disclosure Facility, also known as Code of Practice 9 (COP9), if needed.

HMRC will continue to write to Euro Pacific International Bank customers as they continue to analyse the information which has been disseminated to it. Consequently, anyone with a tax disclosure should approach Crowe with a view to making a disclosure at the earliest possible opportunity. An early disclosure always stands a better chance of securing protection from prosecution and will significantly reduce civil or monetary penalties.

How we can help

There may be perfectly legitimate reasons for UK resident customers to have had accounts in such a remote jurisdiction (e.g. property ownership, family connections, domicile, birth etc.) but the existence and operation of such accounts needs to be examined critically to identify potential tax issues.

Early approaches to Crowe’s Tax Resolutions team will greatly assist the process of getting information, documentation and statements etc. The reasons why some people may find themselves in this difficult position may not always be connected with tax fraud; they might just involve naivety or ignorance. None of these traits constitute tax evasion.

Please get in touch with Sean Wakeman or your usual Crowe Tax Resolutions contact.