ECSH83075 - Sanctions for non-compliance: prohibition on management: temporary prohibition on management
ECSH83075 - Sanctions for non-compliance: prohibition on management: Temporary prohibition on management
Under regulations 78(2) and (3) of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), a prohibition on management can be issued for a specified period and will cease to be imposed when that period ends.
The effect is to temporarily remove the individual from holding an office or position involving responsibility for taking decisions about the management of a business (relevant person specified sector or any supervised business).
Even though it may be temporary, the prohibition is a significant sanction and should only be applied for a length of time it is considered that the individual(s) poses the risk, which gave rise to the prohibition, and at the end of the prohibition the risk is no longer present. The terms of the prohibition on management must be proportionate to the risks posed by that individual continuing to hold that management position. Therefore, the duration of the prohibition on management will be determined by the decision maker (DM) when considering the actions that led to the individual being knowingly concerned in the contravention of the relevant requirement and how long the risk will exist for.
The duration should be for as short a time as reasonably practicable and be proportionate to the risk.
If the risk(s) associated with the individual have not been mitigated sufficiently at the end of the period of the prohibition, the DM should consider, based on the circumstances and facts, whether a further temporary prohibition or a permanent prohibition (see ECSH83175) on management should be imposed.