MLR1PP3100 - Penalties Guidance: Changes in legislation and penalties

The 2001 and 2003 Regulations set the maximum civil penalty for breaches of the Regulations at £5,000. Criminal investigation could also be considered for offences under part II Regulation 3(2) which related to systems and training to prevent money laundering.

• Under the 2007 Regulations there are no maximum penalties, but penalties must be appropriate. We can now consider criminal prosecution for all the regulatory breaches for which we are empowered to consider a civil penalty. If a fit and proper person within a MSB or TCSP business repeatedly fails to comply with the Regulations we can also reconsider, and withdraw, their fit and proper status.
• Under the 2007 Regulations we can no longer issue a penalty for non-payment of a fee or for not allowing Officers entry to inspect records etc. The 2007 Regulations give us new legal powers to enter premises either with or without a warrant. These are explained in more detail in Compliance Guidance MLR3.
• Under the new Regulations we must refuse any application to register unless the full fee is paid. If you do not pay the fee you will not be included on the MLR register.