MLR1PP7410 - Penalties Guidance: Parallel Regulations and breaches: In practice

Under some circumstances this can be extended to include failing to obtain complete information on the payer under the Payments Regulation when previous warnings or penalties have been issued under MLR 2003 for failing to undertake any identity checks and the breaches have had a significant MLR Impact.

A business will have to show that they are taking steps to put the policies or procedures required under the 2007 Regulations in place or that they did put the controls or procedures as required by the 2003 Regulations in place to avoid a penalty.

For example, if following a warning letter under the 2003 Regulations a business put in place the controls or procedures we recommended and they are still following these, they should be sent a warning about the further steps they should follow to become fully compliant with the 2007 Regulations and not be sent an immediate penalty.

If they have not taken any action as a result of a warning letter issued under the 2003 Regulations, they have clearly not taken any significant step to become compliant and a penalty should be considered for the parallel breaches of the 2007 Regulations.