eLearningClasses.com
Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

HIGH VALUE DEALERS IN SPOTLIGHT AS HMRC RAMPS UP AVERAGE MONEY LAUNDERING FINE BY 166%

  • Penalties for sectors including luxury goods such as cars, jewellery and jets totalled £1.1m last year compared with just £560,000 a year earlier
  • Experts welcome HMRC’s deterrent use of tougher financial penalties in areas where use of Suspicious Activity Reports (SARs) is still incredibly low

The value of fines being handed out to firms including art, antique and private jet dealers has more than doubled in a year, anti-money laundering and Big Data specialists Fortytwo Data revealed today1.

The average penalty issued by HMRC rocketed 166% from £484 to £1,290 in 2016/17 as the number of fines overall dropped 23% from 1,153 to 886.

The total value of fines rose 105% from £558,000 in 2015/16 to £1,143,000 in 2016/17, research shows.

Dealers selling high-end jewellery, art, antiques, boats, cars and even private jets are among those overseen by HMRC as a AML supervisor.

Sectors the department supervises include money service business, high value dealers, trust or company service providers, unsupervised accountancy service providers and estate agents3.

HMRC is responsible for policing the way businesses in these sectors meet their anti-money laundering obligations and issuing fines when they don’t.

These business, as well as banks and other financial service firms, can file Suspicious Activity Reports (SARs), to raise red flags over possible criminal activity but reporting is still very low.

There were only 45 SARs filed by high value dealers in 2016/17 while auction houses submitted just NINE2. Estate agents registered 536 and trust/company service providers filed 72.

Year2015/162016/17
No. of HMRC Fines1153886
Total HMRC Fines£558,000£1,143,000
Av. Value of Fine£484£1,290

Julian Dixon, CEO of Fortytwo Data, said: “I hope the dramatic rise in the value of fines is a sign that HMRC is getting tough on the weak links in our money laundering defences.

“High-value dealers and those handling large transactions, particularly in unregulated industries, are a money launderer’s dream.

“Awareness of money laundering risks will be low, profits are high which encourages those who are suspicious to turn a blind eye and criminals are able to launder huge amounts of money in a single, seemingly inn not expect a light touch.

“If HMRC has been an effective AML supervisor during this period, then the fall in the number of penalties issued is also encouraging and may demonstrate their tactics are working.”