The customs and excise division is to be given discretionary powers to disclose information to other agencies that are conducting civil investigations.

The measure is part of the Customs and Excise Bill, which passed the clauses stage in the House of Keys last week.

Treasury department member Ralph Peake said it would ’provide the collector of customs and excise with discretionary power to disclose information and documents to another agency, where that agency is undertaking a civil investigation or is considering to do so, where there are proceedings resulting from a civil investigation’.

It amends the 1986 Customs and Excise Management Act, which provided a ’framework of legal gateways allowing the Customs and Excise Division to co-operate with other agencies on and off the island, to prevent, detect and combat fraud and other serious wrongdoings’.

Mr Peake added: ’Increasingly in recent years, one has seen the use of civil investigations and civil penalties to deal with these matters that might otherwise be dealt with using criminal law.

’The most obvious example might be seen in the United States authorities and agencies, such as the Securities and Exchange Commission or the Office of Foreign Asset Control. However, in recent months, HM Treasury in the UK has instigated a civil penalty regime for non-compliance with UN or EU financial sanctions.

’Indeed for many years, both HMRC and the Customs and Excise division in the island has had the opportunity of either criminal or civil investigations into suspected VAT fraud, while the island was able to demonstrate to Moneyval evaluators that it had a good record of cooperation with other jurisdictions.’

Moneyval lays down international obligations on jurisdictions to ensure they meet requirements in the fight against money laundering.

Mr Peake said: ’Treasury considers it crucial to ensure there are no unnecessary barriers to the ability of its Customs and Excise Division to co-operate with outside agencies in any cases involving serious or complex fraud or other unlawful activities.’