Money Laundering is a complicated and tricky process often used by criminals. It is a way to hide illegal incomes and to make it impossible for authorities to find its source. This has become a serious problem around the globe. Just in the UK, around £5 billion is spent to stop this financial crime by British financial institutions. That’s why HMRC (Her Majesty’s Revenue and Customs) has strict regulations against money laundering.
A person or company has to face penalties or criminal prosecution if caught. Failing to follow the regulations may have serious consequences. However, if you think that charges against you are not fair, contact a Criminal Defence Lawyer.
Process for Penalties and Appeals
In this article, you can know your options against an HMRC decision. You can know guidelines for a review, tribunal appeal, criminal offenses and civil penalties.
Penalties Against the Regulations
A number of actions are taken by HMRC against money laundering. You may get a warning letter or have to face criminal prosecution. For this, the potential impact and seriousness of your actions are kept in mind. All the steps are taken to force businesses to follow the regulations. In case you fail to do, a recompense has to be made to HRMC.
The penalty amount is usually purposed taking into account the following matters.
- Business Size
- The seriousness of the crime
- Reason for Violation
- Received benefits
- Previous History of compliance
- Exposed amount to money laundering
You can get enjoy a reduction in penalty if you voluntary confess a regulation breach. This is known as an “unprompted disclosure” by a business or person. However, you have to provide such information before it contacts you for intervention or inquiry. The disclosure you make has to be in writing. Also, it must contain the process of how in future you aim to follow the regulations.
Penalty Administration Charge
Penalty administration charge has been introduced by HMRC introduced for all supervision penalties that have been issued from the 25th of July 2018. This charge aims at the costs of issuing penalties that are of two types. These are subjected to those businesses that fail to abide by Money Laundering Regulations.
Compliance Penalties
In addition to a penalty for a Money Laundering Regulations breach, an administration charge has to be paid. The amount of administration charge is £1,500. Breach penalty for Money Laundering Regulations includes:
- Record keeping
- Policies, controls, and procedures
- Risk assessment
- Customer due diligence
However, the administration charge will be covered if the penalty is not more than £1,500.
Other Penalties
A penalty and amount up to £350 will be charged in case you failed to comply following things:
- Provide information
- Registration
- Informing HMRC about any business changes
Disagreeing with an HMRC Decision
An HMRC decision can be challenged in certain conditions. You can challenge it if HRMC has canceled the registration of your business. A challenge can also be made if HRMC has published a statement or has not registered the business. Also, you can challenge a decision when it forbids from managing. Furthermore, a penalty charge with a claim of disobeying the regulations can also be challenged.
However, you are not allowed to continue routine activities if:
- Your Registration is suspended
- Your business is not registered yet (refused)
