Compliance services firm Cordium has launched a solution to help firms adapt to the new requirements of the Criminal Finances Act, set to go into effect in September 2017.

Introduced by HMRC, the new legislation is intended to prevent the facilitation of tax evasion in the UK and abroad. All UK business entities must abide by the changes and must take appropriate steps to prevent criminal activity, the firm has said in a statement.

In a bid to assist firms with the process of adapting, Cordium has developed a solution aligned with the six guiding principles that constitute a reasonable prevention defence, as outlined by HMRC:

- Risk assessment – Determine areas of vulnerability and necessary courses of action;

- Proportionate procedures – Implement appropriate risk management policies and systems;

- Top-level commitment – Ensure a culture of compliance from the senior level down; 

- Due diligence – Maintain a thorough knowledge of all parties acting on firm’s behalf;

- Communication and training – Ensure policies are understood throughout the organisation; and

- Monitoring and review – Regularly assess effectiveness and make improvements, as needed.

“Fund managers, wealth managers, and other financial service businesses are subject to a higher risk of facilitating tax evasion and we expect such businesses to be held to a higher standard when it comes to the changes required,” said Matthew Crisp, managing director. “The speed with which the new rules have materialized means that firms need to act immediately to ensure compliance. Our new solution will help clients adapt to the measures as quickly as possible in a manner that is practical from a business perspective.”

It was reported last month that lawyers have warned that the Criminal Finances Act could see certain people unjustly caught in prosecutors' cross-hairs if investigations are not properly policed.