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HMRC internal manual

MLR1 Penalties Guidance

From
HM Revenue & Customs
Updated
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Penalties guidance: MSBs/HVDs: determinations of culpable turnover: method 1

Method 1 - A reasonable estimate of the amount potentially exposed to money laundering as a result of the breaches.

This is the preferred method and should be used where the business is willing to co-operate but the details required to accurately calculate the culpable turnover can not be obtained or verified. The Compliance Officer and the business should try to agree an estimate which is reasonable and fair via a process of negotiation. It is in everyone’s interest to reach agreement as it will avoid having to use what may be perceived as a less accurate or more arbitrary method.

In practice, how an estimate is arrived at will depend on the structure of the business, who committed the breaches, which customers and transactions were involved and the degree to which any anti-money laundering controls that were in place mitigated the impact of the breaches. An estimate should avoid guesswork and be based on the details and background information which are available.

(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)
  • (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)
  • (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)

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