UK's HMRC Fines For Money Laundering Breaches More Than Double In A Year

• HMRC’S average money laundering fine has more than doubled for the second year in a row
• Its fines total more than £2 million in last 12 months
• Average fine for money laundering now more than seven times what it was two years ago

High value dealers and those policed by HMRC for money laundering breaches have seen the value of their fines more than double in the past year, anti-money laundering experts Fortytwo Data¹ can reveal.

While the total number of fines collected by HMRC for money laundering offences was down to 655 last year — a 27% drop — the total value of those fines doubled to £2,258,657.

That means that the average fine levied by HMRC for anti-money laundering breaches is now £3,448 - up 163% since last year and more than SEVEN times the £484 it stood at two years ago. It comes after the average fine nearly trebled to £1,312 in 2016/17.

HMRC is a statutory anti-money laundering supervisory body overseeing money service businesses, estate agents and accountancy service providers. HMRC also supervises high value dealers, which includes those trading in high-end jewellery, art, antiques, boats, cars and even private jets.

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

Table: Money laundering fines in the UK¹

Julian Dixon, CEO of Fortytwo Data, comments:

“Many of these sectors are incredibly vulnerable to money laundering and it is only through a combination of improved monitoring and strong deterrents that real progress is made.

“It is striking how the value of these fines has been climbing so rapidly. They are clearly seen as an effective deterrent and businesses need to be alive to the risks they face.”

1 Data from HMRC courtesy of FOI request (October 2018)