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HMRC internal manual

MLR1 Penalties Guidance

Penalty Guidance: the criteria for penalty reductions: continued

Using this definition in the context of the money laundering Regulations, it is reasonable to expect, that amongst other things which are clearly a requirement of the Regulations, a business will:

  • comply with all the requirements of the Regulations by, for example, applying a risk based approach to anti-money laundering policy, and undertaking appropriate risk assessments to determine what are appropriate controls
  • keep such records as are necessary to enable the business to demonstrate to us that they have correctly applied the Regulations
  • read carefully the notes and guidance issued or approved by us on how the Regulations should be applied to their business
  • seek help from us where there is any doubt about the requirements of the Regulations
  • ensure that if there is a possibility that their business will conduct any regulated activity in the future, they fully understand the requirement to be registered with us.

Where these expectations have not been met, and there is no evidence to the contrary, the default position we will adopt is that there has been a failure by the business to take reasonable care, which in the context of the Regulations means failing to take reasonable steps to comply.