25/07/18 HMRC announce additional MLR penalty administration charge

Wednesday, July 25th, 2018

HMRC have stated that they will introduce a penalty administration charge for all anti-money laundering supervision penalties issued from 25/07/18.  The charge is for costs of enforcement actvity on businesses that do not comply with the Money Laundering Regulations.

HMRC will charge up to £1,500.00 as well as the penalties for breaches of the Money Laundering Regulations such as failures for

  • customer due diligence
  • risk assessment
  • policies, controls and procedures
  • record keeping

HMRC will in addition charge up to £350.00 as well as the penalties for failures to

  • register
  • tell HMRC of changes to your business
  • provide information

Comment -the HMRC decision appears to be a penalty on top of a penalty.  Businesses must ensure that there due diligence policies & procedures. risk assessment, customer, due diligence and record keeping are regularly reviewed and kept up to date.