MT Global, a Luton-based money transfer company, has been handed the largest ever fine issued by HMRC, £23,828,092, for significant regulation breaches between July 2017 and December 2019. These breaches include a failure to:
- carry out risk assessments.
- have the correct policies, controls, and procedures in place
- conduct “fundamental” customer due diligence measures and record-keeping
The MT Global fine is more than double of all penalties issued by HMRC in the 2019/20 financial year which came to a total of £9.1m. Three other companies based in London and Reading were also issued with fines ranging from £2500 to £6591. These fines are the latest in a line of cases pursued by HMRC against money services businesses, as the HMRC and the Financial Conduct Authority and National Crime Agency battle to stem the flow of dirty money through the UK.
HMRC supervises more than 30,000 businesses in the UK, including 1500 principal money service businesses whom they help to protect against criminals who want to launder cash or finance terrorism. HMRC offers this support through webinars, guidance, and e-learning products so that businesses can understand their money laundering responsibilities.