MLR1PP3150 - Penalties Guidance: Specific legislation empowering these changes: Civil penalties

• Regulation 42(1) MLR 2007 says penalties must be appropriate. This is defined as effective, proportionate and dissuasive
• Regulation 42(2) says that we must not impose a penalty where there are reasonable grounds that the person exercised all due diligence, and took all reasonable steps to ensure the requirements would be complied with
• Regulation 11 of the Transfer of Funds (Information on Payer) Regulations 2007 also says that a penalty must be appropriate for breaches of the EU Payments Regulation