Debt and return pursuit: Money Laundering Fees and Penalties: When will a money laundering debt arise?
Power to charge administration fees
Regulation 35 of the Money Laundering Regulations 2007 provides:
“(1) The authority, the OFT and the Commissioners may impose charges -
- (a) on applicants for registration;
- (b) on relevant persons supervised by them.
(2) Charges levied under paragraph (1) must not exceed such amount as the Authority, the OFT or the Commissioners (as the case may be) consider will enable them to meet any expenses reasonably incurred by them in carrying out their functions under these regulations or for any incidental purpose.
(3) Without prejudice to the generality of paragraph (2), a charge may be levied in respect of each of the premises at which a person carries on (or proposes to carry on) business.
(4) The Authority must apply amounts paid to it by way of penalties imposed under regulation 42 towards expenses incurred in carrying out its functions under these regulations or for any incidental purpose.
(5) In paragraph (2), “expenses” in relation to the OFT includes expenses incurred by a local weights and measures authority or DETI pursuant to arrangements made for the purposes of these Regulations with the OFT -
- (a) by or on behalf of the authority; or
- (b) by DETI.”
Power to impose civil penalties
Regulation 42 (1) of the Money Laundering Regulations 2007, provides:
“(1) A designated authority may impose a penalty of such amount as it considers appropriate on a relevant person who fails to comply with any requirement in regulation 7(1), (2) or (3), 9 (2), 10 (1), 11 (1), 14 (1), 15 (1) or (2), 16 (1), (2), (3) or (4), 19(1), (4), (5) or (6), 20 (1), (4) or (5), 21, 26, 27(4) or 33 or a direction made under regulation 18 and for this purpose, “appropriate” means effective, proportionate and dissuasive.”
Due date for payment of penalty
A penalty is due on issue of the penalty notice. However, penalties are subject to review and appeal.
Role of Banking Group
Banking Group is responsible for receiving fees and penalties from Money Service Operators (MSOs).
Notifying the DMU
Where a debt is not paid, Banking Group will notify a debt to the DMU responsible for the postcode where the MSO is based.