Failure to comply with the various legal obligations and responsibilities placed upon you and your business by the Money Laundering Regulations 2007 is enforced by a tough regime of penalties. These measures apply to all businesses caught by the regulations. Senior Manager and all relevant employees MUST be trained in the legal and regulatory responsibilities for money laundering and terrorist financing controls and measures. There is therefore an obligation on employees to comply with the regulations. It follows that businesses can leave themselves exposed to punitive measures by the actions of employees.
Individual and Personal Exposure to Penalties
Under Money Laundering Regulations 2007 (MLR 2007) regulation 47 places obligations upon officers of a Company and Partners. An officer is a body Corporate is, for example a director, manager, secretary, chief executive, member of the committee of management, or a person purporting to act in that capacity. An officer in a Company who consents to or is involved in committing offences under the Regulations, or where any such offence is due to any neglect on his part, they will be INDIVIDUALLY liable to prosecution for the offence as well as the body corporate. Partners of partnerships and officers of unincorporated associations covered by the MLR 2007 are in a similar position. Failure of senior managers to comply with the MLR 2007 obligations may result in financial penalties or a prison term of up to two years and/or an unlimited fine.
Other Offences
Offences and penalties for failing to comply with the Money Laundering Regulations 2007 or commit an offence relating to money laundering are dealt with in 3 different acts and regulations. These are:
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The Money Laundering Regulations 2007 - Under these regulations you can incur up to 2 years' imprisonment and/or an unlimited fine and/or unlimited civil penalties. For further information see here.
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The Proceeds of Crime Act 2002 (PoCA) Part 7 - There are six separate offences set out in this part of the Act. Committing these offences can incur penalties ranging from a maximum of 5 years imprisonment up to a maximum of 14 years imprisonment and/or unlimited fines dependant on what offense you commit. For further information see here.
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The Terrorist Act 2000 Part 3 - This act sets out the primary offenses relating to the funding of terrorism. Again committing these offences can incur penalties ranging from a maximum of 5 years imprisonment up to a maximum of 14 years imprisonment and/or unlimited fines dependant on what offense you commit. For further information see here.
As you can see above the penalties for non-compliance and improper action regarding money laundering are severe and are enforced vigorously. To protect yourself and your business from these kind of penalties a strong anti money laundering culture towards business is a necessity. Compliance with the Money Laundering Regulations 2007 must therefore be taken seriously and all required systems, procedures and checks must be put in place and documented.
For further assistance with meeting you obligations and protecting yourself from these measures please see our services page or contact us on 0844 561 6852 or by email and we will be happy to help.
