MLR1PP6250 - Penalties Guidance: What must be included in a warning letter: Introduction

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

All warning letters should contain the following:

• They must say which Regulations the warning letter relates to
• They must include a warning about penalties, criminal prosecution and for MSBs and TCSPs possible withdrawal of their fit and proper status
• They must warn the business that there may be a follow up visit
• They must say that on this occasion the weaknesses will not be treated as breaches of the Regulations for penalty purposes

For all but registration penalty warnings they should be set out in the form of the schedule in MLR1PP15050 and should specify:

1. The procedural weaknesses that have been identified
2. The specific regulations they relate to
3. The action the business must take to correct these and how long they are being given to become compliant
4. What Compliance Officers expect to see at their next visit

If the weaknesses relate to potential breaches of Regulations 7, 8, 9, 11, or 14 (customer due diligence or ongoing monitoring) the action required to become compliant should include reference to regulation 7(3) (b) of MLR 2007 which requires that the business is able to demonstrate to us that the extent of the measures is appropriate in view of the risks of money laundering and terrorist financing, where this is appropriate.