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HMRC internal manual

MLR1 Penalties Guidance

Penalties guidance: what must be included in a warning letter: introduction

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

All warning letters should contain the following:

  • they must say which Regulations the warning letter relates to
  • they must include a warning about penalties, criminal prosecution and possible withdrawal of fit and proper status (for MSBs/TCSPs)
  • they must warn the business that there will be a follow up visit and when this is likely to be.

All compliance penalty warnings should be accompanied by a table of failures. This table should specify:

  1. The procedural weaknesses that have been identified
  2. The specific regulations they relate to
  3. The action the business must take to correct these and how long they are being given to do this

If the weaknesses relate to potential breaches of Regulations 27, 28, 30, 31, 33, 35, or 37 (customer due diligence or ongoing monitoring) the action required to become compliant should include reference to regulation 28 (16) of MLR 2017 which requires that the business is able to show us that the extent of the measures is appropriate in view of the risks of money laundering and terrorist financing, where this is appropriate.

When they relate to other MLR 2017 breaches they should specify the regulation that has been breached and the associated sub-sections of the regulations breached.

Where MLR 2007 breaches have been found a similar approach should be taken.