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HMRC internal manual

MLR1 Penalties Guidance

Penalties guidance: the purpose of a warning letter

The purpose of a warning letter is to advise a business about:

  • any first time minor breaches we have identified for which we are not going to raise a penalty if corrected as advised
  • any failings or weaknesses that have been identified in the business’s anti-money laundering controls and procedures, which if not corrected will lead to a breach in the future
  • what action the business must take, or steps they must put in place, to ensure future compliance with the Regulations
  • the timescale the business has to correct the weaknesses

The warning letter will give the business:

  • formal notification of the advice that they were given during the Compliance Visit
  • the opportunity to correct any minor weaknesses and show that they are exercising all due diligence and taking reasonable steps to comply with the Regulations