MLR1PP4200 - Penalties Guidance: The range of warnings, penalties and sanctions available to us

The types of penalties and sanctions available to us are:

• Warning letters. These will explain what action is needed by the business to become fully compliant with the Regulations. They are effectively an enforcement notice. Normally only one warning letter will be issued for each failing or breach of the Regulations, which has been identified. This will give the business the opportunity to demonstrate to us that it has taken the reasonable steps we have suggested to become compliant before we issue a penalty
• A penalty notice without a financial penalty or fine. This is effectively a penalty that has been reduced to nil because there has either been a genuine misunderstanding or, under some circumstances, because there has been a full unprompted disclosure by the business
• A range of financial penalties. These will increase sequentially for continued non-compliance
• Withdrawing fit and proper status for specific individuals trading as MSBs and TCSPs. This will mean that they will not be able to occupy any position in any business where there is a requirement to pass the fit and proper test
• Cancellation of a businesses registration because the relevant people in the business are not fit and proper. This may be a direct consequence of our decision to withdraw an individuals fit and proper status
• A criminal investigation and prosecution leading to a sanction imposed by the courts, which could include a fine, community service or a custodial sentence