HMRC acts against tax agency
Tax Credits Ltd (TCL), a company which charged taxpayers significant sums to make claims for tax refunds, has been stopped from operating.
HM Revenue and Customs (HMRC) found TCL had committed serious anti-money laundering breaches.
As a result of breaching the regulations, which are predominately designed to prevent businesses being exploited by criminals to launder money, it is now a criminal offence for TCL to trade as a tax repayment agent.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:
“TCL have ignored their responsibilities under the anti-money laundering measures designed to protect us all from financial crime.
“We will not allow a small number of bad actors to tarnish the reputation of the whole tax agent sector.
It is crucial taxpayers understand the entitlements they can claim directly from HMRC and are properly protected from the misleading tactics used by some repayment agents. The greater protections we’re bringing in will help to stop people unwittingly losing their hard-earned money to misleading agents”.
FCA consults on regulatory change for asset managers
The UK’s Financial Conduct Authority (FCA) has published DP23/2 to look to improve asset management regulation with a more modern and tailored regime.
The DP covers areas including existing structure of the regulatory regime and the impact of technology and innovation. Readers can read further analysis here.
Comment on the DP are requested by 22nd May 2023.
NBA star in crypto charges
The Securities and Exchange Commission (SEC) has charged former NBA player Paul Pierce for touting EMAX tokens, crypto asset securities offered and sold by EthereumMax, on social media without disclosing the payment he received for the promotion and for making false and misleading promotional statements about the same crypto asset. Pierce has agreed to settle the charges and pay $1.409 million in penalties, disgorgement, and interest.
Nexo fined $45 million for illegal unregistered securities offering
The State of New Jersey Attorney General has announced that Nexo Capital Inc. (“Nexo”) has reached a $45 million settlement agreement with state and federal securities regulators over their illegal offer and sale of unregistered securities in the form of interest-bearing digital asset deposit accounts.
Nexo, a Cayman Islands corporation formed in 2018, provided crypto-asset-related financial services, including Earn Interest Product (“EIP”) accounts. Nexo’s EIP accounts promised to pay investors interest in cryptocurrency deposited in a Nexo “crypto interest account.”
“Cryptocurrency-related investments may be a new way for investors to grow their portfolios, but those investments must still follow the same rules and regulations as other securities,” said Attorney General Platkin. “This settlement shows our continued dedication to protecting New Jersey investors in these new markets and sends a clear message to companies that they must comply with state and federal laws.”
A selected summary of key developments for regulated financial institutions
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