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£23.8 Million Fined to MT Global for AML Non-Compliance

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A Money Service Business (MSB) firm, MT Global, penalized by HM Revenue and Customs for breaching regulations that prevent financial crimes like money laundering. A fine of £23.8 million has been handed to MT global, making it the largest fine given by HMRC

The firm has been penalized due to the significant breaches in risk assessment and associated record-keeping, controls, procedures, and policies, and the lack of customer due diligence.

Nick Sharp, Deputy Director of Economic Crime, Fraud Investigation Service, HMRC, said, “Businesses who fail to comply with the money laundering regulations leave themselves, and the UK economy, open to attacks by criminals. Money laundering is not a victimless crime. Criminals use laundered cash to fund serious organised crime, from drug importation to child sexual exploitation, human trafficking and even terrorism. We’re here to help businesses protect themselves from those who would prey on their services. That includes taking action against the minority who fail to meet their legal obligations under the regulations as this record fine clearly shows.”

HMRC keeps a check on over 30,000 businesses in the UK that includes 1,500 money service businesses. They help these firms to remain compliant with the law, and be safe from money laundering and terrorism financing. HMRC works with law enforcement authorities to combat the criminal abuse of the financial sector through strict regulations and understanding of the risks the financial firms might face from these financial crimes.

In 2019 to 2020, HMRC has issued the total penalty of £9.1 million and has shut down up to 89 non-compliant firms. It has also helped in recovering over £166 million from the criminal activities. Out of £166 million, £22 million were directly linked to money laundering crimes.