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HMRC internal manual

MLR1 Penalties Guidance

Penalties guidance: TCSPs/ASPs/EABs: the scale charge

The scale charge should only be applied to the number of relevant clients in the relevant period who were not monitored as a result of the breaches. It is up to the business to show which of the relevant clients in the relevant period were not subject to the breaches and provide evidence to verify this. If these details are not provided the scale charge will be based on the total number of relevant clients.

The number of relevant clients who can be excluded will depend on the nature of the breaches that have been identified.

The following are examples of relevant clients who should not be included (where sufficient evidence can be provided):

  • relevant clients who were provided with advice, services or products which are not subject to the Regulations. More guidance on this can be found in our sector specific Anti-Money Laundering Guidance and Registration Guidance and our internal guidance.
  • relevant clients who were dealt with by staff who were trained and correctly applied anti money laundering controls
  • relevant clients who were dealt with at a set of premises where there were no regulatory breaches

Once you have the number of relevant clients subject to the breaches in the relevant period these details can be used to calculate the additional penalty using the scale charge table at MLR1PP9000.