Taxation and Money Laundering: A Personal View

Abstract

Four years ago, a partner of one of the City's most eminent law firms expressed to me their concerns at the relatively new interpretation of the 1995 UK money laundering legislation, rendering a criminal offence, the failure by a professional, such as a lawyer, to report a suspicion of overseas tax evasion with a potential penalty of three years' imprisonment. Subsequent legislation in the Channel Islands and other UK dependent territories contain similar provisions. The point was made to me that British law firms should, therefore, be careful in acting for Continental European businesses in London, as corporate tax evasion by such has, historically, been widespread — or should report automatically a suspicion when acting for any such businesses.

Citation

Flight, H. (2002), "Taxation and Money Laundering: A Personal View", Journal of Money Laundering Control, Vol. 5 No. 4, pp. 323-324. https://doi.org/10.1108/eb027313