Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

MLR1 Penalties Guidance

HM Revenue & Customs
, see all updates

Penalties guidance: related breaches under MLR 2007: fundamental requirements

Breaches under MLR 2007 will in general fall into several groups of related breaches.

Fundamental requirements

These are fundamental requirements for having effective anti-money laundering controls in place. Where there has been a failure of these Regulations it is also highly likely that there will also have been a failure to apply customer due diligence to a minimum standard:

  • Regulation 19 - failure to keep the required records
  • Regulation 20 - failure to establish, maintain, monitor and manage the required policies and procedures to identify the risk of money laundering and terrorist financing and apply appropriate controls to mitigate the risk and identify suspicious activity

Fundamental customer due diligence measures:

  • Regulation 7 - failure to apply appropriate and risk-sensitive customer due diligence measures and being able to demonstrate this to us
  • Regulation 8 - failure to conduct appropriate and risk-sensitive ongoing monitoring of a business relationship
  • Regulation 14 - failure to apply enhanced customer due diligence and conduct ongoing monitoring where required