HM Revenue and Customs said two U.K. men were arrested on suspicion of tax evasion and money laundering as part of an investigation into similar allegations involving a Puerto Rican bank shut down in 2022.
In January 2020 the Joint Chiefs of Global Tax Enforcement (J5), a multilateral tax enforcement group formed by Australia, Canada, the Netherlands, the United Kingdom, and the United States, carried out a “day of action” targeting an unnamed Central American financial institution suspected of facilitating money laundering and tax evasion for customers “across the globe.”
The financial institution was later identified as Euro Pacific Bank, which was based in Puerto Rico. Puerto Rican regulators ordered the bank to cease operations in July 2022. Two months later, HMRC issued a release saying it was contacting about 600 British clients of the bank to encourage them to reassess their positions and report any undisclosed taxes before the tax agency initiated criminal investigations into their financial affairs.
HMRC said February 20 that it executed search warrants at three locations and arrested the two men, whose names weren’t disclosed. The agency said it seized computers and other digital devices, business records, jewelry, “prestige watches," and designer clothing and handbags.
HMRC repeated its earlier advice that any British Euro Pacific account holders should contact the agency if they are not sure whether they had paid the right amount of tax. It also said that any account holders who fail to disclose their tax liability before February 28 could be subject to enhanced penalties.