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HMRC internal manual

MLR1 Penalties Guidance

From
HM Revenue & Customs
Updated
, see all updates

Penalty guidance: disclosure of breaches: unprompted disclosure

To encourage compliance we will allow generous reductions to the maximum penalty when businesses make an unprompted disclosure that they have breached the Regulations. To benefit fully from these reductions we also expect businesses who make such a disclosure to make an undertaking which specifies how they intend to become fully compliant with the Regulations.

An unprompted disclosure means that the business must contact us before we initiate any type of enquiry or Intervention. The correct way to make a disclosure is in writing to

HMRC Anti Money Laundering Supervision
7th Floor NW
Alexander House
21 Victoria Avenue
Southend on Sea
SS99 1AG

This will enable one of our Officers to contact your business at the earliest opportunity.

  • a disclosure is unprompted if it is made at a time when the person making it has no reason to believe that we have discovered the error
  • otherwise it is a prompted disclosure
  • there can be no halfway house between prompted and unprompted. It is either one or the other

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

The minimum reduction for an unprompted disclosure is 20%, providing the business has not been involved with, or complicit in, any primary money laundering offence.

In practice we will only accept that a disclosure is unprompted if it is made:

  • voluntarily
  • in writing
  • before we contact a business about any previous warning letters or penalties
  • before we write to a business or send them a registration pack because we suspect they are trading illegally
  • before we write to a business about arranging a Compliance Visit
  • before we contact a business by any method as part of a Compliance Intervention

Contacting a business includes leaving a message with a colleague or family member or sending a fax or an e-mail to a confirmed number or address. We consider this to be prompting. If a business makes a disclosure after this, it will only qualify as a prompted disclosure.