Economic Crime Supervision Handbook

ECSH83025 - Sanctions for non-compliance: prohibition on management: introduction

Regulation 78 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) permits HMRC to impose a prohibition on management on a person who was at the material time an officer of the business and was knowingly concerned in a contravention of a relevant requirement by that business.

The decision-maker (DM) needs to ensure that the individual’s role meets the definition of officer – see ECSH82575.

A prohibition on management can be, depending on the nature of the risk, posed by the officer if they were to continue in that position, temporary (ECSH83075) or permanent (ECSH83125).

The extent of the prohibition can prohibit the officer from having a management role in:

• A specific named business.
• A specified sector, or
• Any relevant person (business).

The DM needs to consider all the facts of the case, the continuing risks posed by the individual holding a management position and any mitigating factors when deciding whether the prohibition should be temporary or permanent and the extent of the prohibition.