ECSH82845 - Sanctions for non-compliance: financial penalties: financial penalties framework: behaviours - definition of cooperation

The level of cooperation provided by a business to HMRC can be determined by how much the business tells, helps and gives HMRC in order to听establish any contraventions of听The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). Where the business has cooperated with HMRC, a reduction will be applied to the penalty.听

When considering whether the business has cooperated, the decision maker (DM) needs to consider whether it has done the following:听

  • Telling HMRC there is a contravention, where it is known to them, disclosed it in full and explained how and why it happened.听

  • Helping HMRC, during the course of听engagement with the business to identify contraventions, including:听

    • 听Positive, proactive assistance as opposed to passive acceptance or obstruction.听
  • 听Actively engaging in the work to accurately identify the contraventions of the听MLR 2017 the business is liable for.听
  • 听Volunteering any information relevant to the disclosure.

Giving HMRC access to all relevant documents, records and persons within the business.

In considering whether a business has been cooperative, the DM should always take account of the abilities and circumstances of the business. What is important is the timing, nature and extent of the cooperation provided to HMRC.听

The timing relates to whether the business has, from start, and throughout HMRC engagement, been proactive and听providing and volunteering information and access to records etc as early as possible. If the business has only cooperated throughout part of the engagement with HMRC, it is unlikely that the reduction will apply.听

Deciding whether the business has cooperated is a matter of judgment for the DM and based on the facts of the case. 鈥�Case examples can be found at鈥�ECSH82785.听