ECSH82725 - Sanctions for non-compliance: financial penalties: calculating the amount of a financial penalty
When the decisionmaker (DM) has considered all of factors and has decided that a financial penalty is appropriate, they should then go on to consider what would be 补苍听appropriate amount for the penalty.听
The DM should refer to the financial penalties framework in order to calculate the appropriate penalty relevant to the circumstances of the case.听
Economic Crime - Supervision have a sanctions framework and financial penalties can be categorised according to four types:
The penalty is calculated differently for money service businesses (MSBs)/high value dealers (HVDs)/art market participants (AMPs) and trust or鈥�company service providers (TCSPs) /accountancy听service听providers (ASPs)/estate agency businesses (EABs)/ letting agency businesses (LABs).听听
This is because of the different vulnerabilities to money laundering which are likely to arise as a result of regulatory contraventions within these business sectors.听听
The basic difference is that regulatory breaches by MSBs,听HVDs and AMPs mean that their actual business income or turnover will potentially include proceeds of crime which may have been successfully laundered through their business when The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) are not correctly applied. In contrast, regulatory contraventions by TCSPs/ASPs/EABs/LABs expose the business to the risk of being exploited by customers for money laundering. The amount of money potentially exposed to money laundering as a result of the breaches will have a direct relationship to the number of clients who were not subjected to the controls imposed by MLR 2017.听
听
Type 2 鈥� Trading whilst unregistered (carrying out relevant activity/activities whilst unregistered), see鈥�ECSH82795.听
听
Type 3 鈥� Failure to notify HMRC of material changes and/or inaccuracies to information provided at registration or subsequently, see鈥�ECSH82800.听
听
Type 4 鈥� Failure to provide information or access to premises, see鈥�ECSH82805.听
For further guidance, see鈥�ECSH82775.听