ECSH101000 - Publishing Details of the Non-compliant: Guidance

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We aim to publish penalties quarterly, and cancellations and suspensions of registration fortnightly. These pages are regularly updated with any relevant changes (e.g. appeal outcomes). See ECSH100500. 

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 The information is separated into the following categories:

  • Minor penalties (£1,000 and below).
  • Penalties that do not fall under the aforementioned.

Penalties that are above £1,000 are published in full including the business name, address, sector, regulation breach, penalty amount and the appeal status.

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The Promote team must make the following considerations when publishing the details of any penalty.

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Stability of financial markets

A financial market is where financial securities (stocks and bonds) and commodities (precious metals and agricultural products) are traded at prices in response to supply and demand. Markets can be physical in nature (e.g. London Stock Exchange) or electronic. Both facilitate the exchange of securities/commodities between buyers and sellers.

Movements in the stock market can have an impact on economic stability. For example, a collapse in the share price of a large corporation can contribute to this level of disruption.

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Consideration of proportionality

Proportionality is a general principle used to be fair and just. There is no description of what proportionality means in Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). HMRC will consider the issue of proportionality on a case-by-case basis.

When determining the actual penalty imposed, proportionality is considered to determine the correct balance between the restriction imposed by the corrective measure and the severity/nature of the offence. In other words, the sanction imposed should be proportionate to the underlying breach.

Negative effect on the financial viability of the business, or loss of custom is generally not considered disproportionate and is to be expected.

MLR 2017 allows for penalties to be charged on individuals and connected persons in addition to, or instead of the business. When a sanction is imposed on an individual, the proportionality of publication should be carefully considered.  Personal safety should always be taken seriously, as should any effect on a person’s health or mental health.

All cases must be considered on a case-by-case basis, and where appropriate, further detail should be sought from the caseworker that issued the penalty or the relevant person.

Publication

Two weeks before publication, all supervised persons are informed that we intend to publish the next round of publishing details of the non-compliant (PDNC) on GOV.UK via email. All persons who have made representation against publication are sent a letter with the decision.

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