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HMRC internal manual

MLR1 Penalties Guidance

Penalties guidance: the purpose of our penalties regime

The purpose of the civil penalties and sanctions regime is to:

  • encourage compliant behaviour by ensuring the level of any penalty is appropriate for the breach and is effective - proportionate - dissuasive in accordance with Regulation 76 MLR 2017
  • ensure consistency in the level of penalties and that relevant circumstances are taken into account as required by Regulation 83
  • ensure the framework used to set the level of penalties is transparent
  • ensure the framework used to set the level of penalties takes into consideration the relative size of the business and the amount the potential failure may have exposed to money laundering activity
  • ensure that any penalty reductions takes into consideration the business’s past history of compliance with the Regulations and the willingness they have shown to correct weaknesses and become fully compliant in the future