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HMRC internal manual

MLR1 Penalties Guidance

From
HM Revenue & Customs
Updated
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Penalties guidance: escalated sanctions for serious or repeated non-compliance

The decision about which sanctions are most appropriate for serious or repeated non compliance will depend on the individual circumstances. The normal course of action will be to issue an increased civil penalty using the penalty framework.(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If, in the particular circumstances of the case, use of the penalty framework does not result in a level of penalty that the officer considers will be effective in changing the behaviour of the business, then an alternative method of calculation can be considered. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  MLR1PP7160.(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If the business is an MSB or TCSP and there is a serious risk of money laundering or terrorist financing, or there is consistent non compliance with the regulations, the fit and proper status of the business should be withdrawn and the registration cancelled. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  MLR1PP12100. (This content has been withheld because of exemptions in the Freedom of Information Act 2000) MLR1PP12150.

We will consider a business to be consistently non-compliant where they have been told in writing of a failure to comply with the regulations and at a later intervention they are not complying with the regulations. We will consider there to be consistent non-compliance even where the breach identified on the second intervention is different from that identified on the first occasion. When considering if there has been consistent non compliance the officer should take account of the impact of the failure and the frequency and length of time over which the failures have occurred.

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