The UK released civil measures of money laundering supervision. The document released sets out how HMRC will use its powers under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.
HMRC’s Approach to Non-compliance
HMRC’s approach to promoting compliance is risk-based. It has three strands:
- Promote: to promote compliance by engaging with businesses and helping them to put in place appropriate controls to counter the threat that they may be used by criminals to launder money or fund terrorism.
- Prevent: to prevent non-compliance by making sure that businesses’ processes and interactions with customers help them stay on the right side of the law. HMRC will challenge high risk businesses and those with inappropriate controls to put things right.
- Respond: to respond to non-compliance by treating non-compliant businesses in a way that encourages sustained compliance in the future. HMRC will de-register criminally complicit businesses and illegitimate business models.
HMRC’s Power under the Regulations
HMRC may use the following powers, or a combination of them, to encourage compliance and respond to non-compliance:
- inspect business premises
- issue a penalty
- refuse or remove fit and proper status from an individual
- refuse or remove an approval from an individual
- refuse, suspend or cancel a business’s registration
- issue a notice to request information or attendance at a meeting
- issue a public statement naming and censuring a business or person
- prohibit an individual from holding a managerial role
- seek a court order to enter a premise or to restrain a person from committing a breach.