ECSH82630 - Penalty administration charges

 of바카라 사이트¯ The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017바카라 사이트¯(MLR 2017)바카라 사이트¯allows a supervisor to impose charges to meet any reasonable expenses incurred by them in carrying out their functions under the regulations. This allows HMRC, as an MLR supervisor, to recover these expenses.바카라 사이트¯바카라 사이트¯HMRC recovers the vast majority of these expenses through the supervisory fees it charges to supervised businesses. However, HMRC incurs additional costs in addressing non-compliant businesses. These costs should not be borne by the supervised population as a whole, so an additional charge is passed on to non-compliant businesses reflecting the additional costs of sanctions.바카라 사이트¯바카라 사이트¯This is known as the penalty administration charge (penalty admin charge). 

 

Introduction of penalty admin charges by Economic Crime- Supervision (EC-S) 

EC-S introduced the penalty admin charge in July 2018. It is an additional fee charged to a non-compliant business when a바카라 사이트¯penalty is imposed. It is intended to바카라 사이트¯make sure those businesses who are compliant do not pay for the cost of HMRC바카라 사이트™s supervision of the non-compliant, by linking the charge to the imposition of civil penalties on non-compliant businesses.바카라 사이트¯The amount of the penalty admin charge was calculated with reference to the cost of staff resource involved in processing each penalty type. 

Details of the penalty administration charge for each type of penalty can be found바카라 사이트¯here. 

 

Penalty admin charge caps and penalty types 

The penalty admin charge is capped depending upon the type of penalty it is associated with. The cap is intended to keep admin charges reasonable and proportionate to the amount of the penalty. A penalty admin charge cannot exceed the amount of the penalty being imposed.바카라 사이트¯바카라 사이트¯As an example, the penalty admin charge for a type 1 penalty is £1500, so a type 1 penalty of £500 would have a penalty admin charge capped at £500. 

 

Considerations when applying a penalty admin charge 

  • The penalty early payment reduction only applies to the associated penalty and the calculation does not take into account the penalty admin charge (which should be paid in full). 

  • A penalty admin charge is not appealable. However, if a penalty was reduced as a result of successful challenge, including statutory review and/or appeal, the penalty admin charge should be reduced to reflect the revised cap, as necessary. 

  • A penalty admin charge is applied when a penalty is being charged. However, if multiple penalty types are being charged for the same business, this will affect how the penalty admin charge is applied. Please refer to바카라 사이트¯ECSH82635바카라 사이트¯for further guidance.Â