Economic Crime Supervision Handbook

ECSH82791 - Sanctions for non-compliance: financial penalties: financial penalties framework: groups of related contraventions

Contraventions under MLR 2017 will in general fall into several groups of related contraventions.

Fundamental requirements

These are the fundamental requirements for having effective anti-money laundering controls in place

• Regulation 18 (1) - failure to identify and assess the risks of money laundering, terrorist financing and proliferation financing a business is subject to and to take account of information provided and risk factors
• Regulation 18(4) - failure to keep an up-to-date record in writing of the risk assessment
• Regulation 18(6) - failure to provide the risk assessment when requested
• Regulation 18A 바카라 사이트“ failure to identify and assess the risks of proliferation financing to which its business is subject and take into account information provided and risk factors
• Regulation 19 - failure to establish, maintain, review, update, keep a record in writing and communicate the policies, controls and procedures to mitigate and manage the risks identified in the risk assessment
• Regulation 19A 바카라 사이트“ failure to establish, maintain, review, update, keep a record in writing  and communicate the policies, controls and procedures to mitigate and effectively manage the risks of proliferation financing identified in the risk assessment undertaken in Regulation 18A(1)
• Regulation 20 바카라 사이트“ failure to apply policies, controls and procedures to subsidiaries and branches in and outside the UK
• Regulation 21(1) 바카라 사이트“ failure to appoint a compliance officer, screen relevant employees and establish an independent audit function
• Regulation 21(3) - failure to appoint a nominated officer,
• Regulation 21(4) - failure to notify the identity of and changes to the compliance and nominated officer
• Regulation 21(5) 바카라 사이트“ failure to consider internal disclosures of suspicion
• Regulation 21(7) - failure to appoint an individual to monitor and manage compliance with, and internal communication of, the policies, controls and procedures adopted under regulation 19.
• Regulation 21(8) - failure to establish and maintain systems which enable it to respond fully to enquiries from law enforcement officers
• Regulation 26(4) failure of a relevant person to take reasonable care that no-one is appointed, or acts in a capacity that requires approval, without being approved
• Regulation 26(5) 바카라 사이트“ failure of a sole practitioner requiring approval to be approved
• Regulation 26(10) - failure of a relevant firm to inform HMRC of a conviction for a relevant offence within the specified time
• Regulation 40 - failure to keep the required records and provide them when required
• Regulation 41 - failure to provide customers with the required information in relation to data protection
• Regulation 78(5) - failure of a relevant person to take reasonable care to ensure that a prohibited person does not act in a management role

Fundamental customer due diligence measures

• Regulation 27 - failure to apply customer due diligence measures when required.
• Regulation 28(2) - failure to identify and verify the customer and assess the purpose and intended nature of the business relationship or occasional transaction
• Regulation 28(3) - failure to obtain, determine and verify details as specified where the customer is body corporate
• Regulaiton 28(3A) - failure to take reasonable measures understand the ownership and control of  a customer who is a legal person, trust, company, foundation or similar legal arrangement.
• Regulation 28(4) - failure to identify and take reasonable measures to verify the identity of the beneficial owner
• Regulation 28((8) - failure to keep records of steps taken to identify the beneficial owner of a corporate body
• Regulation 28(10) - failure to identify and verify a person acting on behalf of the customer and to verify their authority to act
• Regulation 28(11) - failure to conduct ongoing monitoring of a business relationship
• Regulation 28(12) - failure to take account of the risk assessment and level of risk when taking customer due diligence measures
• Regulation 30 - failure to comply with the requirements on timing of verification
• Regulation 30A 바카라 사이트“ failure to report any discrepancies to the registrar of companies between information held on the beneficial ownership of a customer, as a result of customer due  diligence, and information on the register.
• Regulation 33 - failure to apply enhanced due diligence and enhanced ongoing monitoring where required
• Regulation 35(1) 바카라 사이트“ failure to have appropriate risk management systems and procedures to determine whether a person is a politically exposed person (PEP) or a family member or known close associate of a PEP and to manage the enhanced risk of the business relationship or transactions
• Regulation 35(5) 바카라 사이트“ failure to take additional measures in relation to a PEP
• Regulation 37 - failure to apply simplified due diligence appropriately taking account of the risk assessment, information provided to it and the risk factors
• Regulation 39(2) - failure to use reliance appropriately and to obtain the customer due diligence information from the person relied on and to enter into arrangements as required

Other customer due diligence measures

• Regulation 31 바카라 사이트“ failure to cease transactions where a relevant person is unable to apply customer due diligence measures

Other breaches

• Regulation 24 바카라 사이트“ failure to take appropriate measures to ensure relevant employees are trained, made aware of the law relating to money laundering and terrorist financing, data protection requirements and to maintain a written record of the measures taken to train relevant employees
• Regulation 66 - failure to provide information or produce documents specified in a notice, or attend for an interview
• Regulation 69 - failure to allow entry, inspection of premises without warrant
• Regulation 70 - failure to allow entry under warrant

Registration breaches

• Regulation 56 (1) and (5) - failure of a relevant person to be included in the appropriate register
• Regulation 57(1) - failure to provide the specified information at registration
• Regulation 57(4) - failure to notify changes affecting registration or subsequent information within the specified time.
• Regulation 57 - failure to comply with a requirement imposed by a registering authority