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HMRC internal manual

MLR1 Penalties Guidance

Penalties Guidance: Related breaches under the Payments Regulation 2007

Failing to keep records:

  • Article 5(5) - failing to keep the required records on the payer
  • Article 11 - failing to keep the required records on the payee

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Failing to obtain, verify, or provide complete customer information:

  • Article 5(1) read with Article 6(1) - failing to provide complete information on the payer accompanying transfers of funds within the EEA
  • Article 5(2) read with Article 5(3) or (4) (whichever is relevant) - failing to obtain verification of complete information on the payer
  • Article 6(2) - failing to provide complete information on the payer following a request
  • Article 7(1) read with Article 7(2) - failing to provide complete information on the payer accompanying transfers of funds from the EEA to outside the EEA)
  • Article 12 - failing to keep complete information on the payer with the transfer when dealing with the payment service provider of the payee

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Failure to detect or obtain missing information:

  • Article 8 - failing in detection of missing information to the payment service provider of the payee
  • Article 9(1) - failing to take steps to obtain information on the payer, involving transfers of funds with missing or incomplete information
  • Articles 13(3), (4) or (5) - failing to correctly inform the payment service provider of missing information, provide this within 3 days and keep records, when using a payment system with technical limitations

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Failure to report when acting as payment service provider of the payee:

  • Article 9(2) sub-paragraph 2 - failing to report where a payment service provider regularly fails to supply the required information on the payer