HMRC issues record £23.8m fine for money laundering breaches
/On 7 January HM Revenue and Customs (HMRC) published the latest list of businesses handed fines for breaching strict regulations aimed at preventing criminals from laundering illicit cash.
The list includes money transfer company MT Global Limited, which has been handed the largest ever fine issued by HMRC, for significant breaches of the regulations between July 2017 and December 2019 relating to:
risk assessments and associated record-keeping
policies, controls and procedures
fundamental customer due diligence measures
Nick Sharp, Deputy Director of Economic Crime, Fraud Investigation Service, HMRC, said:
Businesses who fail to comply with the money laundering regulations leave themselves, and the UK economy, open to attacks by criminals.
Money laundering is not a victimless crime. Criminals use laundered cash to fund serious organised crime, from drug importation to child sexual exploitation, human trafficking and even terrorism.
We’re here to help businesses protect themselves from those who would prey on their services. That includes taking action against the minority who fail to meet their legal obligations under the regulations as this record fine clearly shows.
HMRC supervises more than 30,000 businesses across the UK, including 1,500 principal money service businesses (MSBs), and helps these firms protect themselves from criminals who seek to launder cash or finance terrorism.
Webinars, guidance and e-learning is available here to help guide and educate businesses on their money laundering responsibilities.
HMRC works closely with partner law enforcement agencies and government departments to reduce the criminal abuse of the sector through tightened registration, greater understanding of the risks, and joint periods of concerted action focussing on those MSBs at greatest risk of being used by organised crime.
In 2019 to 2020 HMRC completed 2,000 interventions on supervised businesses, issued penalties totalling £9.1 million and stopped 89 non-compliant businesses and individuals from trading. It also recouped over £166 million from the proceeds of crime, of which more than £22 million was linked to money laundering offences – sending a very clear message that crime doesn’t pay.
Further information
In accordance with our responsibilities under the Money Laundering Regulations (MLRs) 2017, HMRC publishes details of businesses failing to comply with the MLRs who have received a penalty.
Money laundering is the process through with criminals disguise the criminal origin of money and assets they earned through criminal activity. Anti-money laundering guidance for MSBs is available on GOV.UK
Serious and organised crime costs the UK billions of pounds every year and HMRC’s anti-money laundering supervision is a vital tool in combatting that. Money laundering regulations are in place to prevent criminals benefitting from the proceeds of crime and to help tackle money laundering/terrorist financing, human trafficking, drugs, prostitution and other organised crime.
Using a range of civil penalties and prosecutions, HMRC responds effectively to businesses who fail to comply with the money laundering regulations.
Last year, HMRC announced a £7.8 million fine against a London MSB that ignored anti-money laundering regulations. HMRC, Metropolitan Police (MPS) and Financial Conduct Authority (FCA) also carried out a month-long crackdown in July 2019 on MSBs at risk of being used for money laundering to fund organised crime.
Bron: HMRC
