HMRC probes suspected tax evasion bank customers

Hundreds of UK customers of a collapsed Puerto Rican bank linked to tax evasion and money laundering are being given a chance to check and correct their tax affairs.

HM Revenue and Customs (HMRC) is currently writing to around 600 people in the UK who used the Euro Pacific Bank (EPB) urging them to check their tax position and make any corrections to their tax affairs.

HMRC has already launched criminal investigations into UK customers of the bank and more could follow into those who decline to do the right thing and make necessary corrections to their tax affairs.

The Puerto Rico Office of the Commissioner of Financial Institutions (OCIF) suspended the operations of the EPB on 30 June 2022 for breaching its capital requirements. It has since entered a liquidation process.

EPB was at the centre of a global day of action by the Joint Chiefs of Global Tax Enforcement (J5) in 2020, as part of an investigation into suspected tax evasion and money laundering.

Hundreds of civil and criminal investigations involving EPB have already been launched across the J5 jurisdictions of the UK, Canada, Australia, Netherlands and the United States.

Simon York, HMRC’s Director of Fraud Investigation and the UK’s J5 Chief said:

“We have tax enquiries, criminal investigations and intelligence operations already underway involving this bank and there will be more to come. Anyone with an account at this bank should come and speak to us before we come and speak to you.

“Tax evasion is increasingly global. Our J5 alliance has enabled us to work across borders to enhance our ability to tackle these sophisticated and complex threats to international tax systems.

“Our message is clear – the game is up for offshore tax evaders.”

HMRC urges UK customers to make disclosures under the Worldwide Disclosure Facility (WDF).

Customers of the bank can make a disclosure here https://www.gov.uk/guidance/worldwide-disclosure-facility-make-a-disclosure and here https://www.gov.uk/tax-foreign-income.

Notes to Editors

1. You can find out more about HMRC's approach to tax fraud at gov.uk.
2. Who are the J5:
   1. The J5 was formed to lead the fight against international tax crime and money laundering.
   2. The group contains leading tax experts, offshore, crypto and cyber experts from UK, USA, Australia, Canada and the Netherlands to share intelligence at speed, build capacity and carry out operational activity.
   3. The J5 is working on more than 50 investigations including those involving sophisticated international enablers of tax evasion, a global financial institution and its intermediaries who facilitate taxpayers to hide their income and assets.
   4. The crimes the J5 are tackling often fund other serious criminality including illicit drugs, guns and trafficking.
3. Follow HMRC’s Press Office on Twitter @HMRCpressoffice