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HMRC internal manual

MLR1 Penalties Guidance

From
HM Revenue & Customs
Updated
, see all updates

Penalties guidance: the purpose of our penalties regime

The purpose of the civil penalties 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 42(1) MLR 2007
  • ensure consistency in the level of penalties
  • 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