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HMRC internal manual

MLR1 Penalties Guidance

Penalties guidance: the penalties and sanctions escalator

Where there are breaches of the regulations, officers must always consider imposing penalties or sanctions against the business or individual(s) who controls the business. These must mirror the requirements of the Regulations and must be effective, proportionate and dissuasive. In the event of continued non-compliance, the sanctions should become progressively stronger and this may include increasingly large penalties to possible withdrawal of fit and proper status, cancellation of registration and criminal prosecution. Our message to those who fail to comply is simple. We will issue dissuasive penalties and consider other sanctions for continuing non-compliance.