ECSH85000 - Criminal prosecution referrals

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) allow for criminal prosecution of offences appearing in regulations 86, 87 and 88 MLR 2017. Regulation 86 covers powers to prosecute a relevant person (business or individual) where they have contravened any relevant requirement of MLR 2017; regulation 87 covers offences of prejudicing investigations; and regulation 88 covers information offences. Relevant requirements for the purposes of regulation 86 are listed in Schedule 6 MLR 2017.

Additionally, failures to make suspicious activity reports (SARs) to the National Crime Agency (NCA) in accordance with either Section 330 in Part 7 of the Proceeds of Crime Act 2002 (POCA) and Section 21A in Part 3 of the Terrorism Act 2000 are offences which EC-S can refer to FIS Criminal for prosecution.

Appropriate criminal enforcement in parallel with civil enforcement actions can help HMRC achieve its anti-money laundering and terrorist financing objectives. It’s therefore an option for EC-S to pass a case to FIS Criminal for investigation and potential referral to the prosecutor for one breach but consider civil sanction measures against another.

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EC-S should consider criminal referral for prosecution in any circumstances where a contravention of MLR 2017 has been identified.  

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Where HMRC has concerns that a non-compliant business may take action to appear compliant once a criminal investigation is under way (such as applying to be registered for example), EC-S will consider the imposition of appropriate complementary civil action during the period in which cases are investigated, prepared, and referred for a charging decision. Such action includes suspension of registration, suspension of management and Court injunctions. Any civil action must be discussed with criminal teams prior to commencement.

 

Compliance breaches

For all other compliance breaches, cases are risked and passed to EC-S compliance teams for working. 

If a criminal investigation referral is considered necessary for either a registered business or an unregistered business, the relevant internal EC-S criminal referral process should be followed.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)