HM Revenue & Customs (HMRC) handed out a record number of fines and warnings to businesses who failed to prevent money laundering in 2020, a report has revealed.
The research comes after the regulator handed out the largest fine to date to a money transfer company for significant breaches to the regulations between 2017 and 2019.
According to the figures, more than 30,000 businesses in the UK come under the scope of anti-money laundering regulations. These primarily include money service businesses (MSBs), but also include the financial services, estate agents and law firms.
Working with HMRC and partner law enforcement agencies, each business is required by law to protect themselves from criminals seeking to launder illegal cash.
However, in the year 2019/20, the regulator carried out 2,000 interventions on supervised businesses, issuing penalties totalling £9.1 million. Enforcement action also resulted in the closure of 89 non-compliant businesses and the recovery of £166 million under the Proceeds of Crime Act.
This year, HMRC also issued a fine of £23.8 million – the largest to date – to money transfer company MT Global Limited, for money laundering breaches between July 2017 and December 2019. These related to risk assessments and associated record-keeping, policies, controls and procedures, and fundamental customer due diligence measures.
Commenting on the report, Nick Sharp, the Deputy Director of Economic Crime for HMRC, said: “Businesses who fail to comply with the money laundering regulations leave themselves, and the UK economy, open to attacks by criminals.
“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.”
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