MLR1PP8050 - Penalties Guidance: The basic principles of our penalty framework

The basic principles of the penalty framework are relatively simple:

Step 1 - We will calculate the level of the starting penalty. This will consist of a minimum basic starting penalty and an additional geared penalty determined by the amount potentially exposed to money laundering by the breach.

Step 2 - The additional penalty will be capped at 10% of the business's Gross Profit. This will ensure that the penalty will be in proportion to a business's profits. See MLR1PP9150 

Step 3 - Standard behaviour based percentage reductions will be applied to the starting penalty to arrive at the final penalty figure. See MLR1PP10050 

Step 4 - If the business corrects the breaches within a specified period we will under some circumstances suspend collection of and then cancel part of the penalty. See MLR1PP1066