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HMRC internal manual

MLR1 Penalties Guidance

Penalty guidance: breaches which will be treated as deliberate

During a Compliance Visit it will become apparent if there has been a deliberate failure to comply with the Regulations. The following circumstances will be highly indicative of this type of behaviour, although not possible to describe every set of circumstances when breaches will be a result of a deliberate failure rather than neglect.

  • a failure by the business to employ any meaningful risk based anti-money laundering controls after a previous penalty or warning letter.
  • a failure by the business to follow written advice or warnings that we have issued. Typically a penalty and maybe a warning will have been issued, and despite making it clear what should be done, no significant action will have been taken to follow our advice.
  • breaches of the Regulations which give the business a clear financial advantage over competing businesses and which are not results of simple neglect.
  • a persistent failure by the business to co-operate with us. This is likely to be demonstrated by the following behaviours:
  1. A warrant is needed to enter the premises or examine records
  2. The business fails to provide the details which are required to calculate a penalty
  3. The relevant individuals within the business behaves in a deliberately obstructive manner towards our Compliance Officers

Where the breaches are deliberate there is a high risk that the business may be involved or complicit with a primary money laundering offence.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) MLR1PP12150(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)