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HMRC internal manual

MLR1 Penalties Guidance

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HM Revenue & Customs
Updated
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Penalties guidance: specific failings and breaches of the EU Payments Regulation

Regulation 11 of the Transfer of Funds Regulations 2007 makes specific reference to Articles in the EU Payments Regulation, which identify the following breaches, to which this penalty guidance applies.

Regulations specific to the payment service provider of the payer.

  • Article 5(1) read with Article 6(1) - failing to provide complete information accompanying transfers of funds within the EEA
  • Article 5(2) read with Article 5(3) or (4) (whichever is relevant) - failing to obtain verification of complete information on the payer
  • Article 5(5) - failing to keep the required records
  • Article 6(2) - failing to provide complete information on the payer following a request
  • Article 7(1) read with Article 7(2) - failing to provide complete information accompanying transfers of funds from the EEA to outside the EEA

Regulations specific to the payment service provider of the payee.

  • Article 8 - failing in detection of (to require) missing information from the payment service provider of the payer
  • Article 9(1) - failing to take steps to obtain information on the payer, involving transfers of funds with missing or incomplete information
  • Article 9(2) sub-paragraph 2 - failing to report. Where a payment service provider regularly fails to supply the required information on the payer
  • Article 11 - failing to keep the required records

Regulations specific to the intermediary payment service provider.

  • Article 12 - failing to keep complete information on the payer with the transfer
  • Articles 13(3), (4) or (5) - failing to correctly inform the payment service provider of missing information, provide this within 3 days and keep records, when using a payment system with technical limitations.