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HMRC internal manual

MLR1 Penalties Guidance

Penalties guidance: specific failings and breaches of the transfer of funds regulations

Schedule 6 relevant requirements makes specific reference to Articles in  Regulation (EU) 2015/847 on information on the payer and payee accompanying transfers of funds, which identify the following requirements, to which this penalty guidance applies where there are failures:

Regulations specific to the payment service provider of the payer:

  • Article 4 requirement to provide complete information on the payer and payee accompanying transfers of funds
  • Article 5 requirements in relation to information where the transfer of funds is within the EEA
  • Article 6 requirements in relation to information where the transfer of funds to outside the EEA

Regulations specific to the payment service provider of the payee:

  • Article 7 requirement to impliment procedures to detect missing information on the payer or the payee
  • Article 8 requirement to impliment effective risk based procedures to determine whether to execute, reject or suspend a transfer of funds with missing or incomplete information on the payer or the payee
  • Article 9  requirement to take accout of missing or incomplete information on the payer or payee as a factor in assessing and reporting suspicious transactions

Regulations specific to the intermediary payment service provider:

  • Article 10 requirement to ensure that information on the payer and the payee is retained with the transfer
  • Article 11 requirement to impliment effective procedures to detect whether the information on payer and payee is admissable and  complete 
  • Article 12 requirement to establish effective risk based procedures to determine whether to execute, reject or suspend a transfer of funds with missing or incomplete information on the payer or the payee and to take appropriate follow up action
  • Article 13 requirement to take accout of missing or incomplete information on the payer or payee as a factor assessing and reporting suspicious transactions
Specific to payment service provider of the payer, payee and intermediaries:
  • Article 14 requirement to respond fully and without delay to enquiries from the authorities to requests for information
  • Article 15 requirement to process data only for the purpose of  the prevention of money laundering and terrorist financingdata protection
  • Article 16 requirement to retain records for the required period