ECSH84500 - Sanctions for non-compliance: injunctions

An injunction is a court order which compels a company or a person to stop doing a particular act or thing, or to do a particular act or thing.

An injunction results in disruption to the business or person on whom it is served but does not preclude other enforcement actions.

 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) permits HMRC to apply to the court for an injunction.

If, on the application of HMRC, the court is satisfied, it may issue an order as follows:

Restraining (preventing the business from making) the contravention, where the court is satisfied that:

  • There is a reasonable likelihood any person will contravene a relevant requirement of MLR 2017; or
  • Any person has contravened a relevant requirement of MLR 2017 and that there is a reasonable likelihood that the contravention will continue or be repeated.

Requiring any person, or any other person who appears to have been knowingly concerned in the contravention, to take such steps as the court may direct to remedy it, where the court is satisfied that:

  • Any person has contravened a relevant requirement and there are steps which could be taken to remedy the contravention.

Restraining a person from disposing or otherwise dealing with any assets belonging to that person where the court is satisfied that the person is reasonably likely to dispose of or otherwise deal with where:

  • Any person may have contravened a relevant requirement; or
  • Any person has been knowingly concerned in the contravention of a relevant requirement.

Any party who contravenes an injunction can be held in contempt of court, which, in some circumstances, can lead to imprisonment.

An injunction can be considered where it is necessary to prevent an immediate contravention from taking place or continuing and/or where the business has failed to cooperate with HMRC. It will normally only be appropriate in the most serious cases where there are, or likely to be, contraventions of MLR 2017, the Proceeds of Crime Act 2002 or the Terrorism Act 2000 (or other relevant regulations) and it is essential to promptly halt these.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)