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HMRC internal manual

MLR1 Penalties Guidance

From
HM Revenue & Customs
Updated
, see all updates

Penalties guidance: anti money laundering/counter terrorist financing legislation: civil penalties

Money Laundering Regulations 2007 (MLR): 

  • Regulation 42(1) says penalties must be appropriate. This is defined as effective, proportionate and dissuasive.
  • Regulation 42(2) says that we must not impose a penalty where there are reasonable grounds to be satisfied that the person exercised all due diligence, and took all reasonable steps to ensure the requirements would be complied with

Transfer of Funds (Information on Payer) Regulations 2007: 

  • Regulation 11 says that a penalty must be appropriate for breaches of the EU Payments Regulation

Schedule 7 Counter Terrorism Act 2008 (CT Act): 

  • Para 25(1) says penalties must be appropriate. This is defined as effective, proportionate and dissuasive
  • Para 25 (2) says that we must not impose a penalty where there are reasonable grounds to be satisfied that the person exercised all due diligence, and took all reasonable steps to ensure the requirements would be complied with.