Legalize / United Kingdom / Statutory-Instrument

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

Type Statutory-Instrument

Publication 2026-06-30

Last updated 2026-07-03

State In force

Department Statute Law Database

Source legislation.gov.uk

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(e) registered small electronic money institutions under the Electronic Money Regulations 2011.

(2) The Commissioners are the transfer of funds supervisory authority for payment service providers who do not come within paragraph (1).

Duties of transfer of funds supervisory authorities

63

(1) A transfer of funds supervisory authority must—

(a) monitor effectively the payment service providers for whom it is the transfer of funds supervisory authority;

(b) take the measures necessary to secure compliance by payment service providers with the requirements of the funds transfer regulation;

(c) take effective measures to encourage the payment service provider to report breaches of the provisions of the funds transfer regulation to the authority;

(d) take such steps as it considers appropriate—

(i) to co-operate with other supervisory authorities, the Treasury and law enforcement authorities in relation to the development and implementation of policies to counter money laundering and terrorist financing;

(ii) to co-ordinate activities to counter money laundering and terrorist financing;

(iii) to co-operate with overseas authorities to ensure the effective supervision of a payment service provider to which paragraph (2) applies.

(2) This paragraph applies to a payment service provider established—

(a) in the United Kingdom, which has its head office in another country; or

(b) in another country but which has its head office in the United Kingdom.

(3) Co-operation may include the sharing of information which the supervisory authority is not prevented from disclosing.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) A transfer of funds supervisory authority which, in the course of carrying out any of its functions under this Part or otherwise, knows or suspects, or has reasonable grounds for knowing or suspecting, that a payment service provider is or has engaged in money laundering or terrorist financing must as soon as practicable inform the NCA.

(6) A disclosure made under paragraph (5) is not to be taken to breach any restriction, however imposed, on the disclosure of information.

(7) Where a disclosure under paragraph (5) is made in good faith, no civil liability arises in respect of the disclosure on the part of the person by whom, or or on whose behalf, it is made.

(8) The functions of the FCA under this Part are to be treated for the purposes of section 1A of, and Parts 1, 2 and 4 of Schedule 1ZA to, FSMA (the Financial Conduct Authority) as functions conferred on the FCA under that Act.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) For the purposes of this regulation, “overseas authority” means—

(a) an authority responsible for any of the functions provided for in the funds transfer regulation in an EEA state ... in which the payment service provider is established or has its head office; and

(b) where the payment service provider is established or has its head office in another country which is not an EEA state, an authority in that country which has equivalent functions to any of the functions provided for in the funds transfer regulation.

Obligations of payment service providers

64

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) A payment service provider must ensure that it is able ... to respond fully and rapidly to enquiries from a person specified in paragraph (3) concerning any of the information required by or under the funds transfer regulation.

(3) The persons specified in this paragraph are—

(a) financial investigators accredited under section 3 of the Proceeds of Crime Act 2002 (accreditation and training) ;

(b) persons acting on behalf of the Scottish Ministers in their capacity as an enforcement authority under that Act; and

PART 7A — Cryptoasset Transfers

Chapter 1 — Application and interpretation

Application of this Part

64A

(1) This Part applies in respect of a cryptoasset transfer which is not excluded by paragraph (2) or (3).

(2) This Part does not apply in respect of a transfer of funds within the meaning of Article 3.9 of the funds transfer regulation.

(3) This Part does not apply to a cryptoasset transfer where both the originator and the beneficiary is a cryptoasset business acting on its own behalf.

Interpretation

64B

In this Part—

“batch file transfer” means a bundle of individual inter-cryptoasset business transfers from a single originator put together by a cryptoasset business of the originator for transmission to a cryptoasset business of a beneficiary or beneficiaries;

“beneficiary” means the intended recipient of a cryptoasset from an originator;

“cryptoasset” has the meaning given in regulation 14A(3)(a) (cryptoasset exchange providers and custodian wallet providers) and includes a right to, or interest in, the cryptoasset;

“cryptoasset business” means a cryptoasset exchange provider or a custodian wallet provider;

“cryptoasset transfer” means an inter-cryptoasset business transfer or an unhosted wallet transfer;

“inter-cryptoasset business transfer” means a transaction carried out by two or more cryptoasset businesses which involves the making available of a cryptoasset of an originator to a beneficiary, provided that at least one of the cryptoasset businesses involved in the transaction is carrying on business in the United Kingdom in respect of the transaction (whether that is a cryptoasset business acting for the originator or a cryptoasset business acting for the beneficiary or an intermediary cryptoasset business);

“intermediary cryptoasset business” means a cryptoasset business which, in the course of an inter-cryptoasset business transfer—is not acting for the originator or the beneficiary; andreceives and transmits a cryptoasset on behalf of a cryptoasset business;

“originator” means a person who owns a cryptoasset and allows a transfer of that cryptoasset;

“unhosted wallet” means software or hardware that enables a person to store and transfer a cryptoasset on their own behalf, and in relation to which a private cryptographic key is administered by that person;

“unhosted wallet transfer” means the transfer of a cryptoasset either—by an originator from an unhosted wallet to the cryptoasset business of a beneficiary, orby the cryptoasset business of the originator to the unhosted wallet of a beneficiary,with a view to making the cryptoasset available to the beneficiary;

“unique transaction identifier” means the combination of letters, numbers or symbols determined by a cryptoasset business which permits the traceability of the transaction from the originator to the beneficiary;

“working day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.

Chapter 2 — Inter-cryptoasset business transfers

Information accompanying an inter-cryptoasset business transfer

64C

(1) In respect of an inter-cryptoasset business transfer, the cryptoasset business of the originator must ensure that the cryptoasset transfer is accompanied by the information specified in paragraph (5).

(2) Where paragraph (3) applies, if the cryptoasset business of the beneficiary makes a request for the information specified in paragraph (6), the cryptoasset business of the originator must, within three working days of the request, also provide the information specified in paragraph (6).

(3) This paragraph applies where each of the cryptoasset businesses executing the inter-cryptoasset business transfer (including any intermediary cryptoasset business) is carrying on business in the United Kingdom in respect of the transaction.

(4) Where paragraph (3) does not apply and the transfer is equal to or exceeds the equivalent in cryptoassets of £800 in value (taken together with any other cryptoasset transfer which appears to be linked), the cryptoasset business of the originator must ensure that the inter-cryptoasset business transfer is also accompanied by the information specified in paragraph (6).

(5) The information specified in this paragraph is—

(a) the name of the originator and the beneficiary;

(b) if the originator or beneficiary is a firm,the registered name of the originator or beneficiary (as the case may be), or if there is no registered name, the trading name;and

(c) the account number of the originator and the beneficiary, or if there is no account number, the unique transaction identifier.

(6) The information specified in this paragraph is—

(a) if the originator is a firm—

(i) the customer identification number; or

(ii) the address of the originator’s registered office, or, if different, or if there is none, its principal place of business;

(b) if the originator is an individual, one of the following—

(i) the customer identification number;

(ii) the individual’s address;

(iii) the individual’s birth certificate number, passport number or national identity card number;

(iv) the individual’s date and place of birth.

(7) In the case of a batch file transfer where the cryptoasset business of the beneficiary is carrying on business wholly outside the United Kingdom, paragraphs (1) and (4) do not apply to each of the individual business transfers, provided that—

(a) the batch is accompanied by the information required by paragraphs (1) and (4); and

(b) each individual transfer within the batch is accompanied by the account number of the originator, or if there is no account number, the unique transaction identifier.

(8) Information relating to the originator required under this regulation must have been verified by the cryptoasset business of the originator on the basis of documents or information in either case obtained from a reliable source which is independent of the person whose identity is being verified.

(9) A cryptoasset business of an originator must not make an inter-cryptoasset business transfer before ensuring full compliance with this regulation.

Missing or non-corresponding information: the cryptoasset business of a beneficiary

64D

(1) When a cryptoasset business of a beneficiary receives a cryptoasset as part of an inter-cryptoasset business transfer it must, before making the cryptoasset available to the beneficiary, check whether—

(a) it has received the information required by regulation 64C to be provided; and

(b) the information relating to the beneficiary corresponds with information verified by it under Part 3 (customer due diligence).

(2) Where the cryptoasset business of the beneficiary becomes aware that any information required by regulation 64C to be provided is missing or does not correspond with information verified by it under Part 3, the cryptoasset business of the beneficiary must—

(a) request the cryptoasset business of the originator to provide the missing information;

(b) consider whether to make enquiries as to any discrepancy between information received and information verified by it under Part 3; and

(i) to delay making the cryptoasset available to the beneficiary until the information is received or any discrepancy resolved; and

(ii) if the information is not received or discrepancy resolved within a reasonable time, to return the cryptoasset to the cryptoasset business of the originator.

(3) In deciding what action to take under paragraph (2)(c) the cryptoasset business must have regard to—

(a) the risk assessments carried out by the cryptoasset business under regulations 18(1) (risk assessment by relevant persons) and 18A(1) (risk assessment by relevant persons in relation to proliferation financing); and

(b) its assessment of the level of risk of money laundering, terrorist financing and proliferation financing arising from the inter-cryptoasset business transfer.

(4) In assessing the level of risk for the purposes of paragraph (3)(b), the cryptoasset business must take account of factors including—

(a) the purpose and nature of its business relationship with the beneficiary and of the inter-cryptoasset business transfer;

(b) the value of the inter-cryptoasset business transfer and any cryptoasset transfer which appears to be linked;

(c) the frequency of cryptoasset transfers made by or to the beneficiary via the cryptoasset business of the beneficiary; and

(d) the duration of its business relationship with the beneficiary.

(5) The cryptoasset business of a beneficiary must report to the FCA repeated failure by a cryptoasset business to provide any information required by regulation 64C as well as any steps the cryptoasset business of the beneficiary has taken in respect of such failures.

Missing information: intermediaries

64E

(1) When an intermediary cryptoasset business receives a cryptoasset as part of an inter-cryptoasset business transfer it must, before further transferring the cryptoasset, check whether it has received the information required by regulation 64C to be provided.

(2) Where an intermediary cryptoasset business becomes aware that any information required by regulation 64C to be provided is missing, the intermediary cryptoasset business must—

(a) request the cryptoasset business from which it received the transfer to provide the missing information; and

(b) consider whether—

(i) to delay the onward transfer of the cryptoasset until the information is received; and

(ii) if the information is not received within a reasonable time, to return the cryptoasset to the cryptoasset business from which it was received.

(3) In deciding what action to take under paragraph (2)(b) an intermediary cryptoasset business must have regard to—

(a) the risk assessments carried out by the intermediary cryptoasset business under regulations 18(1) and 18A(1); and

(b) its assessment of the level of risk of money laundering, terrorist financing and proliferation financing arising from the inter-cryptoasset business transfer.

(4) In assessing the level of risk under paragraph (3)(b) the intermediary cryptoasset business must take account of factors including—

(a) the purpose and nature of the business relationship with its customer cryptoasset business, and of the inter-cryptoasset business transfer; and

(b) the value of the inter-cryptoasset business transfer and any cryptoasset transfer which appears to be linked.

(5) An intermediary cryptoasset business must report to the FCA repeated failure by a cryptoasset business to provide any information required by regulation 64C as well as any steps the intermediary cryptoasset business has taken in respect of such failures.

Retention of information with an inter-cryptoasset business transfer: intermediaries

64F

An intermediary cryptoasset business must—

(a) ensure that all the information that is provided in relation to an inter-cryptoasset business transfer pursuant to regulation 64C, including any that is requested to be provided before the transfer is made under regulation 64E(2)(a), also accompanies the onward transfer (whether to another intermediary cryptoasset business or to the cryptoasset business of the beneficiary); and

(b) send on to the relevant cryptoasset business, as soon as practicable, any information requested under regulation 64E(2)(a) which is received after it has transferred the cryptoasset to the relevant cryptoasset business.

Chapter 3 — Unhosted wallet transfers

Requesting information: unhosted wallet transfers and cryptoasset businesses

64G

(1) A cryptoasset business involved in an unhosted wallet transfer may request from its customer (whether the originator or the beneficiary)—

(a) such information specified in regulation 64C(5) as it does not already hold; and

(b) where the unhosted wallet transfer is equal to or exceeds the equivalent in cryptoassets of £800 in value (taken together with any other cryptoasset transfer which appears to be linked), and where its customer is the beneficiary, the information specified in regulation 64C(6) in respect of the originator.

(2) In determining under paragraph (1) whether to request information from its customer, the cryptoasset business must have regard to—

(a) the risk assessments carried out by the cryptoasset business under regulations 18(1) and 18A(1); and

(b) its assessment of the level of risk of money laundering, terrorist financing and proliferation financing arising from the unhosted wallet transfer.

(3) In assessing the level of risk under paragraph (2)(b), a cryptoasset business must take account of factors including—

(a) the purpose and nature of—

(i) the business relationship with its customer (whether beneficiary or originator); and

(ii) the unhosted wallet transfer;

(b) the value of the unhosted wallet transfer and any cryptoasset transfer which appears to be linked;

(c) the frequency of cryptoasset transfers made by or to the customer (whether beneficiary or originator) via the cryptoasset business; and

(d) the duration of the business relationship with its customer.

(4) In the event that the cryptoasset business involved in an unhosted wallet transfer does not receive information requested under paragraph (1) it must not make the cryptoasset available to the beneficiary.

Chapter4 — Provision of information to law enforcement authorities

Provision of information

64H

A cryptoasset business must respond fully and without delay to a request in writing from a law enforcement authority (within the meaning of regulation 44(10)) for any information held in connection with this Part which that authority reasonably requires in connection with the authority’s functions.

PART 8 — Information, Investigation and Directions

Interpretation

65

(1) In this Part—

“premises” means any building or other structure, including a moveable structure, other than premises used only as a dwelling;

“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal;

(2) Unless otherwise defined in this Part—

“officer” means—an officer of the FCA, including a member of the FCA's staff or an agent of the FCA;an officer of Revenue and Customs; oran employee or agent of a professional body listed in Schedule 1 who is authorised by the body to act on behalf of the body for the purposes of this Part;a relevant officer;

“relevant officer” means—in Great Britain, an officer of a local weights and measures authority;in Northern Ireland, an officer of the Department for the Economy,acting pursuant to arrangements made with the FCA or with the Commissioners for the purposes of these Regulations.

(3) For the purposes of this Part, a person is connected to a relevant person or a payment service provider (“a connected person”) if that person is a person listed in Schedule 5 in relation to the relevant person or payment service provider.

Power to require information

66

(1) A supervisory authority may, by notice in writing to a person (“P”) who is (or was at any time) a relevant person, a payment service provider or a connected person, require P to—

(a) provide specified information, or information of a specified description;

(b) produce specified documents, or documents of a specified description; or

(c) attend before an officer of the supervisory authority (or of a supervisory authority which is acting on behalf of that authority) at a time and place specified in the notice and answer questions.

(1A) The power in paragraph (1) includes power to require P to provide a copy of any suspicious activity disclosure made to the NCA.

(2) The information or documents must be provided or produced—

(a) before the end of such reasonable period as may be specified; and

(b) at such place as may be specified.

(3) An officer who has authorisation in writing from a supervisory authority to do so may require P without unreasonable delay to—

(a) provide the officer with specified information or information of a specified description; or

(b) produce to the officer specified documents or documents of a specified description.

(4) The powers in this regulation may only be exercised by a supervisory authority, or by an officer authorised under paragraph (3) to act on behalf of the supervisory authority, in relation to information or documents which are reasonably required by the supervisory authority in connection with the exercise by the authority of any of its supervisory functions.

(5) Where a supervisory authority or an officer requires information to be provided or documents to be produced under paragraph (1) or (3), the notice must set out the reasons why the information is required to be provided or the documents produced, unless the supervisory authority or (as the case may be) the officer is not permitted to disclose this information.

(6) The supervisory authority may require—

(a) information contained in a computer or other storage device, or recorded in any other way otherwise than in legible form to be produced to it in legible form or in a form from which the information can readily be produced in visible and legible form; and

(b) any information provided under this regulation to be provided in such form as it may reasonably require.

(7) The production of a document does not affect any lien which a person has on the document.

(8) If a supervisory authority has power under this regulation to require a person to produce a document but it appears that the document is in the possession of a third person, that power may be exercised by the supervisory authority in relation to the third person.

(9) In this regulation, “suspicious activity disclosure” has the meaning given in regulation 104(4).

Requests in support of other authorities

67

(1) On receiving a request to which paragraph (2) applies from a foreign authority, the supervisory authority may exercise the power conferred by regulation 66, and for these purposes, regulation 66 has effect as if it also referred to information and documents reasonably required by the supervisory authority to meet such a request.

(2) This paragraph applies if the request is made by the foreign authority in connection with the exercise by that authority of—

(a) functions provided for in the fourth money laundering directive;

(b) functions provided for in the funds transfer regulation; or

(c) functions provided for in the law of a third country equivalent to those provided for in the fourth money laundering directive or the funds transfer regulation.

(3) In deciding whether or not to exercise its powers under regulation 66 in response to a request, the supervisory authority may take into account in particular—

(a) whether, in the territory of the foreign authority concerned, corresponding assistance would be given to the supervisory authority;

(b) whether the case concerns the breach of a law, or other requirement, which has no close parallel in the United Kingdom or involves the assertion of a jurisdiction not recognised by the United Kingdom;

(4) The supervisory authority may decide not to exercise its powers under regulation 66 unless the foreign authority undertakes—

(a) to make such contribution towards the cost of doing so as the supervisory authority considers appropriate; and

(b) to comply with such conditions in relation to the information and documents as the supervisory authority considers appropriate.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) “Foreign authority” means an authority in a territory which is not part of the United Kingdom which exercises functions referred to in paragraph (2).

Requests to other authorities

68

(1) This regulation applies if—

(a) documents or information which are reasonably required by a supervisory authority in connection with the exercise by the authority of any of the functions given to it under these Regulations are not (as far as the supervisory authority is aware) available in the United Kingdom; and

(b) the supervisory authority has reason to believe that such documents or information may be held by a person who is within the jurisdiction of a foreign authority.

(2) A supervisory authority may request the assistance of the foreign authority in obtaining specified information or documents which satisfy the conditions in paragraph (1).

(3) The information or documents provided to the supervisory authority pursuant to a request under paragraph (2) must only be used—

(a) for the purpose for which it was provided; or

(b) for the purposes of proceedings arising as a result of contravention of a relevant requirement in these Regulations, or proceedings arising out of such proceedings.

(4) Paragraph (3) does not apply if the foreign authority by which the information or documents were provided consents to its use.

(5) In this regulation, “foreign authority” has the meaning given in regulation 67(6).

Entry, inspection of premises without a warrant etc

69

(1) Paragraph (2) applies where a duly authorised officer of (or acting on behalf of) a supervisory authority in relation to a relevant person or a payment service provider (“P”) has reasonable grounds to believe that—

(a) any premises are being used by P in connection with P's business or professional activities; and

(b) P may have contravened the requirements of—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) the funds transfer regulation, or

(iii) these Regulations.

(2) The officer may, on producing evidence of the officer's authority, at any reasonable time—

(a) enter the premises;

(b) inspect the premises;

(d) inspect any documents or other information found on the premises;

(e) require any person on the premises to provide an explanation of any document or to state where documents or information might be found;

(f) inspect any cash found on the premises.

(3) The officer may take copies of, or make extracts from, any documents found as a result of the exercise of the power in paragraph (2).

(4) In this regulation, “duly authorised officer” means—

(a) an officer of the FCA, authorised in writing to exercise the powers under this regulation on behalf of the FCA or another supervisory authority, by a Head of Department working within the enforcement function of the FCA; or

(b) an officer of Revenue and Customs authorised in writing to exercise the powers under this regulation on behalf of the Commissioners, or another supervisory authority, by an officer of Revenue and Customs of at least the grade of senior officer.

Entry of premises under warrant

70

(1) A justice may issue a warrant under this regulation if satisfied on information given on oath (or in Scotland by evidence on oath) by a duly authorised officer acting on behalf of a supervisory authority that—

(a) there are reasonable grounds for believing that the first, second, or third set of conditions is satisfied; or

(b) there are reasonable grounds for suspecting that the fourth set of conditions is satisfied.

(2) The application for the warrant must—

(a) identify the premises to which the application relates and state that the premises is not used only as a dwelling;

(b) state that the officer has reasonable grounds to suspect a warrant is necessary in connection with the exercise of the supervisory functions of the supervisory authority for which the officer is acting and the warrant is sought for the purpose of those functions;

(i) will give to any person on the premises, when entering the premises, evidence of identification and authority to act on behalf of the supervisory authority, and

(ii) will give to that person, no later than on entering the premises, a notice identifying and explaining the powers exercisable under this regulation, and

(d) state that the warrant is sought in relation to material specified in the application, or that there are reasonable grounds for suspecting that there is material falling within regulation 66 on the premises.

(3) The first set of conditions is—

(a) that a person on whom a requirement has been imposed under regulation 66 has failed (wholly or in part) to comply with it, and

(b) that on the premises specified in the warrant—

(i) there are documents which have been required, or

(ii) there is information which has been required.

(4) The second set of conditions is—

(a) that the premises specified in the warrant are premises of—

(i) the relevant person or the payment service provider (“P”),

(ii) a member of the same group as P; or

(iii) a third person referred to in regulation 66(8);

(b) that there are on the premises documents or information in relation to which a requirement could be imposed under regulation 66, and

(i) it would not be complied with, or

(ii) the documents or information to which it related would be removed, tampered with or destroyed.

(5) The third set of conditions is—

(a) that an officer has been obstructed in the exercise of the power under regulation 69; and

(b) that there is on the premises specified in the warrant documents, information or cash which could be inspected under regulation 69(2)(d) or (f).

(6) The fourth set of conditions is—

(a) that an offence under these Regulations has been, is being or is about to be committed by P; and

(b) there is on the premises specified in the warrant information or documents relevant to whether the offence has been, is being or is about to be committed.

(7) A warrant under this regulation authorises the executing officer—

(a) to enter the premises specified in the warrant;

(b) to search the premises and take possession of any documents or information appearing to be documents or information of a kind in respect of which the warrant was issued (“the relevant kind”) or to take, in relation to any such documents or information, any other steps which may appear to be necessary for preserving them or preventing interference with them;

(d) to take copies of, or extracts from, any documents or information appearing to be of the relevant kind;

(e) to require any person on the premises to provide an explanation of any document or information appearing to be of the relevant kind or to state where it may be found; and

(f) to use such force as may be reasonably necessary.

(8) Where information of the relevant kind is contained in a computer or other storage device, or is recorded in any other way otherwise than in legible form, the warrant authorises the executing officer to take possession of that information in a form in which it can be taken away and in which it is legible.

(9) A warrant under this regulation—

(a) may be exercised by any executing officer;

(b) may authorise persons to accompany any executing officer who is executing it;

(10) The powers in paragraph (7) may be exercised by a person authorised by the warrant to accompany an executing officer; but that person may exercise those powers only in the company of, and under the supervision of, an executing officer.

(11) In England and Wales, sections 15(5) to (8) and 16(3) to (12) of the Police and Criminal Evidence Act 1984 (execution of warrants and safeguards) apply to warrants issued under this regulation.

(12) In Northern Ireland, Articles 17(5) to (8) and 18(3) to (12) of the Police and Criminal Evidence (Northern Ireland) Order 1989 (execution of warrants and safeguards) apply to warrants issued under this regulation.

(13) In this regulation—

“duly authorised officer” means—where a warrant is issued on the basis of information given on behalf of the FCA or another supervisory authority, an officer of the FCA authorised in writing to exercise the powers under this regulation by a Head of Department working within the enforcement function of the FCA,where a warrant is issued on the basis of information given on behalf of the Commissioners or another supervisory authority, an officer of Revenue and Customs authorised in writing to exercise the powers under this regulation by an officer of Revenue and Customs of at least the grade of senior officer;

“executing officer” means—where a warrant is issued on the basis of information given on behalf of the FCA, or of a supervisory authority for which the FCA is acting, a constable,where a warrant is issued on the basis of information given on behalf of the Commissioners, or of a supervisory authority for which the Commissioners are acting, an officer of Revenue and Customs;

“justice” means—in England and Wales, a justice of the peace;in Northern Ireland, a lay magistrate; orin Scotland, a sheriff or summary sheriff.

Retention of documents taken under regulation 66 or 70

71

(1) Any material possession of which is taken in accordance with a requirement under regulation 66 or under a warrant issued under regulation 70 (“seized material”) may be retained for so long as it is necessary to retain it (rather than copies of it) in connection with the exercise of the functions of the supervisory authority under these Regulations for the purposes of which any requirement was imposed or the warrant was issued.

(2) If a duly authorised officer (within the meaning of regulation 70(13)) has reasonable grounds for suspecting that—

(a) the seized material may need to be produced for the purposes of legal proceedings; and

(b) it might otherwise be unavailable for those purposes,

it may be retained until the proceedings are concluded.

(3) A person claiming to be the owner of any seized material may apply to the Crown Court or (in Scotland) the sheriff or the summary sheriff for an order for the delivery of the material to the person appearing to the court, the sheriff or the summary sheriff to be the owner.

(4) If on an application under paragraph (3), the court or (in Scotland) the sheriff or the summary sheriff cannot ascertain who is the owner of the seized material the court, the sheriff or the summary sheriff may make such order as the court, the sheriff or the summary sheriff thinks fit.

(5) An order under paragraph (3) or (4) does not affect the right of any person to take legal proceedings against any person in possession of seized material for the recovery of the material.

Provision of information and warrants: safeguards

72

(1) A person may not be required under regulation 66, 69 , 70, 74A or 74B to produce excluded material, or to provide information, produce documents or answer questions which that person would be entitled to refuse to provide, produce or answer on grounds of legal professional privilege in proceedings in the High Court, except that a lawyer may be required to provide the full name and address of the lawyer's client.

(2) The provision of information in accordance with regulation 66, 69 , 70, 74A or 74B, is not to be taken to breach any restriction, however imposed, on the disclosure of information.

(3) Where a disclosure is made in good faith in accordance with regulations 66, 69 , 70, 74A or 74B no civil liability arises in respect of the disclosure on the part of the person making the disclosure.

(4) A warrant issued under regulation 70 does not confer the right to seize privileged material or excluded material.

(5) Privileged material is any material which the person would be entitled to refuse to produce on grounds of legal professional privilege in proceedings in the High Court.

(6) In the application of this regulation to Scotland, the references in paragraphs (1) and (5)—

(a) to proceedings in the High Court are to be read as references to proceedings in the Court of Session; and

(b) to an entitlement on grounds of legal professional privilege are to be read as references to an entitlement on the grounds of confidentiality of communication—

(i) between professional legal advisers and their clients; or

(ii) made in connection with or in contemplation of legal proceedings and for the purposes of those proceedings.

(7) For the purposes of this regulation, “excluded material” means personal records which a person has acquired or created in the course of any trade, business, profession or other occupation or for the purposes of any paid or unpaid office and which is held subject—

(a) to an express or implied undertaking to hold it in confidence; or

(b) to a restriction on disclosure or an obligation of secrecy contained in any enactment, including an enactment contained in, or made under, an Act passed after this Regulation.

Admissibility of statements

73

(1) A statement made by a person in response to a requirement imposed under regulations 66(1)(c), 69(2)(e) , 70(7)(e) or 74B(6) may not be used in evidence against the person in criminal proceedings.

(2) Paragraph (1) does not apply—

(a) in the case of proceedings under Parts 2 to 4 of the Proceeds of Crime Act 2002 (confiscation proceedings) ;

(b) on a prosecution for an offence under section 5 of the Perjury Act 1911 (false statements) ;

(d) on a prosecution for an offence under section 44(2) of the Criminal Law (Consolidation) (Scotland) Act 1995 (false statements and declarations) ;

(e) on a prosecution for an offence under regulation 88; or

(f) for some other offence where, in giving evidence, the person makes a statement inconsistent with the statement mentioned in paragraph (1).

(3) A statement may not be used by virtue of paragraph (2)(f) against a person unless—

(a) evidence relating to it is adduced; or

(b) a question relating to it is asked;

by them or on their behalf in the proceedings arising out of the prosecution.

Powers of relevant officers

74

(1) A relevant officer (“R”) may only exercise powers under this Part pursuant to arrangements made with the FCA or with the Commissioners—

(a) by or on behalf of the local weights and measures authority of which R is an officer (“R's authority”); or

(b) by the Department for the Economy.

(2) Anything done or omitted to be done by, or in relation to, R in the exercise or purported exercise of a power in this Part is to be treated for all purposes as having been done or omitted to be done by, or in relation to—

(a) an officer of the FCA, if R is acting pursuant to arrangements made with the FCA, or

(b) an officer of Revenue and Customs, if R is acting pursuant to arrangements made with the Commissioners.

(3) Paragraph (2) does not apply for the purpose of any criminal proceedings brought against R, R's authority, the Department for the Economy, the FCA or the Commissioners, in respect of anything done or omitted to be done by R.

(4) R must not disclose to any person other than the FCA (if R is acting pursuant to arrangements made with the FCA), the Commissioners (if R is acting pursuant to arrangements made with the Commissioners), R's authority or, as the case may be, the Department of the Economy, information obtained by R in the exercise of such powers unless—

(a) R has the approval of the FCA or where appropriate the Commissioners to do so, or

(b) R is under a duty to make the disclosure.

Reporting requirements: cryptoasset businesses

74A

(1) Each cryptoasset exchange provider and custodian wallet provider (“cryptoasset business”) must provide to the FCA such information as the FCA may direct—

(a) about compliance by the cryptoasset business with requirements imposed in or under Parts 2 to 6 and 7A of these Regulations;

(b) which is required by the FCA for the purpose of calculating charges under regulation 102 (costs of supervision); or

(c) which is otherwise reasonably required by the FCA in connection with the exercise by the FCA of any of its supervisory functions.

(2) The information referred to in paragraph (1) must be provided at such times and in such form, and verified in such manner, as the FCA may direct.

Report by a skilled person: cryptoasset businesses

74B

(1) This regulation applies where the FCA reasonably considers that a report by a skilled person, concerning a matter relating to the exercise of the FCA’s functions under these Regulations, is required in connection with the exercise by the FCA of any of its functions under these Regulations in relation to a relevant person who is a cryptoasset exchange provider or custodian wallet provider.

(2) The FCA may either—

(a) by notice in writing to the relevant person, require the relevant person to appoint a skilled person to provide the FCA with a report on the matter concerned, or

(b) itself appoint a skilled person to do so, and recover any expenses incurred in doing so as a fee to be payable by the relevant person concerned.

(3) When acting under paragraph (2)(a), the FCA may require—

(a) the report to be in such form as may be specified in the notice; and

(b) that the contract between the skilled person and the relevant person contain certain terms that the FCA considers appropriate.

(4) The FCA must give notice in writing of an appointment under paragraph (2)(b) to the relevant person.

(5) References in this regulation to a skilled person are to a person—

(a) appearing to the FCA to have the skills necessary to make a report on the matter concerned, and

(b) where the appointment is to be made by the relevant person, nominated or approved by the FCA.

(6) It is the duty of the relevant person and any connected person to give the skilled person all such assistance as the skilled person may reasonably require.

Directions: cryptoasset businesses

74C

(1) The FCA may exercise its powers of direction under paragraph (5) or (6) in writing in relation to a cryptoasset exchange provider or custodian wallet provider (“cryptoasset business”).

(2) A direction may be imposed before, on or after registration, as the FCA considers appropriate.

(3) A direction may be imposed for the purpose of—

(a) remedying a failure to comply with a requirement under these Regulations;

(b) preventing a failure to comply, or continued non-compliance with a requirement under these Regulations;

(c) preventing the cryptoasset business from being used for money laundering, terrorist financing or proliferation financing.

(4) A direction may require or prohibit the taking of specified action.

(5) The FCA may, on its own initiative—

(a) impose a new direction;

(b) vary a direction imposed under this regulation; or

(6) The FCA may, on the request of a cryptoasset business—

(a) impose a new direction;

(b) vary a direction imposed under this regulation; or

(7) The FCA must consult the PRA before imposing or varying a direction which relates to—

(a) a person who is a PRA authorised person; or

(b) a person who is a member of a group which includes a PRA authorised person.

(8) A direction may be expressed to expire at the end of such period as the FCA may specify, but the imposition of a direction that expires at the end of a specified period does not affect the FCA’s power to impose a new direction.

(9) If the FCA imposes or varies a direction under paragraph (5)(a) or (b) it must give the cryptoasset business a notice in writing.

(10) The notice referred to in paragraph (9) must—

(a) give details of the direction;

(b) state the FCA’s reasons for imposing or varying the direction;

(c) inform the cryptoasset business that it may make representations to the FCA within such period as may be specified in the notice (whether or not the cryptoasset business has referred the matter to the Upper Tribunal);

(d) inform the cryptoasset business of when the direction takes effect; and

(e) inform the cryptoasset business of its right to refer the matter to the Upper Tribunal.

(11) The FCA may extend the period allowed under the notice for making representations.

(12) If, having considered any representations made by the cryptoasset business, the FCA decides not to rescind the direction, it must give the cryptoasset business a notice in writing.

(13) If, having considered any representations made by the cryptoasset business, the FCA decides—

(a) to vary the direction,

(b) to rescind the direction and to impose a different direction, or

it must give the cryptoasset business a notice in writing.

(14) A notice under paragraph (12) must inform the cryptoasset business of its right to refer the matter to the Upper Tribunal.

(15) A notice under paragraph (13)(a) or (b) must comply with paragraph (10).

(16) If a notice informs the cryptoasset business of its right to refer a matter to the Upper Tribunal, it must give an indication of the procedure on such a reference.

(17) If the FCA imposes or varies a direction under paragraph (6)(a) or (b) it must give the cryptoasset business a notice in writing.

(18) The notice referred to in paragraph (17) must—

(a) give details of the direction;

(b) state the reasons for imposing or varying the direction; and

(19) If the FCA rescinds a direction under paragraph (6)(c) it must give the cryptoasset business a notice in writing.

(20) The FCA may, if it considers it proportionate to do so, publish such information about a notice given under paragraphs (9), (13) or (17) as it considers appropriate.

(21) Where the FCA publishes such information and the FCA decides to rescind the direction to which the notice relates, the FCA must, without delay, publish that fact in the same manner as that in which the information was published under paragraph (20).

(22) Where the FCA publishes information under paragraph (20) and the person to whom the notice is given refers the matter to the Upper Tribunal, the FCA must, without delay, publish information about the status of the appeal and its outcome in the same manner as that in which the information was published under paragraph (20).

PART 9 — Enforcement

CHAPTER 1 — General

Meaning of “relevant requirement”

75

For the purposes of this Part, “relevant requirement” has the meaning given in Schedule 6.

CHAPTER 2 — Civil penalties and notices

Power to impose civil penalties: fines and statements

76

(1) Paragraph (2) applies if a designated supervisory authority is satisfied that any person (“P”) has contravened a relevant requirement imposed on that person.

(2) A designated supervisory authority may do one or both of the following—

(a) impose a penalty of such amount as it considers appropriate on P;

(b) publish a statement censuring P.

(3) If a designated supervisory authority considers that another person who was at the material time an officer of P was knowingly concerned in a contravention of a relevant requirement by P, the designated supervisory authority may impose on that person a penalty of such amount as it considers appropriate.

(4) A designated supervisory authority must not impose a penalty on P under this regulation for contravention of a relevant requirement if the authority is satisfied that P took all reasonable steps and exercised all due diligence to ensure that the requirement would be complied with.

(5) Where the FCA proposes to impose a penalty under this regulation on a PRA-authorised person or on a person who has a qualifying relationship with a PRA-authorised person, it must consult the PRA.

(6) In deciding whether P has contravened a relevant requirement, the designated supervisory authority must consider whether at the time P followed—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) any relevant guidance which was at the time—

(i) issued by the FCA; or

(ii) issued by any other supervisory authority or appropriate body and approved by the Treasury.

(7) A penalty imposed under this Part is payable to the designated supervisory authority which imposes it.

(8) For the purposes of this regulation—

(a) “appropriate” means (other than in references to an appropriate body) effective, proportionate and dissuasive;

(b) “designated supervisory authority” means the FCA or the Commissioners.

Power to impose civil penalties: suspension and removal of authorisation

77

(1) Paragraph (2) applies if the FCA is satisfied that a relevant person or a payment service provider has—

(a) repeatedly or systematically failed to include the information it is required to include on the payer or the payee under Articles 4, 5 or 6 of the funds transfer regulation;

(b) failed to implement effective risk-based procedures in breach of Articles 8 or 12 of the funds transfer regulation;

(d) repeatedly or systematically failed to retain records in breach of Article 16 of the funds transfer regulation; or

(e) failed to comply with a relevant requirement.

(2) The FCA may take one or more of the measures set out in sub-paragraphs (a) and (b)—

(a) to cancel or suspend, for such period as it considers appropriate—

(i) any permission which an authorised person has to carry on a regulated activity;

(ii) the authorisation of a payment service provider as an authorised payment institution under the Payment Services Regulations 2017;

(iii) the registration of a payment service provider as a small payment institution under the Payment Services Regulations 2017;

(iv) the authorisation of a payment service provider as an authorised electronic money institution under the Electronic Money Regulations 2011 ; or

(v) the registration of a payment service provider as a small electronic money institution under the Electronic Money Regulations 2011;

(b) to impose, for such period as it considers appropriate, such limitations or other restrictions as it considers appropriate—

(i) in relation to the carrying on of a regulated activity by an authorised person;

(ii) on the authorisation of a payment service provider as a payment institution under the Payment Services Regulations 2017;

(iii) on the registration of a payment service provider as a small payment institution under the Payment Services Regulations 2017;

(iv) on the authorisation of a payment service provider as an electronic money institution under the Electronic Money Regulations 2011; or

(v) on the registration of a payment service provider as a small electronic money institution under the Electronic Money Regulations 2011.

(3) In paragraph (2)—

(a) “permission” means any permission that the authorised person has, whether given (or treated as given) under Part 4A of FSMA ;

(b) “regulated activity” has the meaning given by section 22 of FSMA ).

(4) The period for which a suspension, limitation or other restriction is to have effect may not exceed 12 months.

(5) A suspension may relate only to the carrying on of an activity in circumstances specified by the FCA when the suspension is imposed.

(6) A restriction may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action.

(7) The FCA may—

(a) withdraw a suspension, limitation or other restriction; or

(b) vary a suspension, limitation or other restriction so as to reduce the period for which it has effect or otherwise to limit its effect.

(8) For the purposes of this regulation, “appropriate” means effective, proportionate and dissuasive.

Power to impose civil penalties: prohibitions on management

78

(1) Paragraph (2) applies if a designated supervisory authority considers that another person who was at the material time an officer of P was knowingly concerned in a contravention of a relevant requirement by P.

(2) The designated supervisory authority may impose one of the following measures on the person concerned—

(a) a temporary prohibition on the individual concerned holding an office or position involving responsibility for taking decisions about the management of a relevant person or a payment service provider (“having a management role”);

(b) a permanent prohibition on the individual concerned having a management role.

(3) A prohibition may be expressed to expire at the end of such period as the designated supervisory authority may specify, but the imposition of a prohibition under paragraph (2)(a) that expires at the end of a specified period does not affect the designated supervisory authority's power to impose a new prohibition under paragraph (2)(a).

(4) A prohibition imposed under paragraph (2) may be expressed to be a prohibition on an individual having a management role in—

(a) a named relevant person or payment service provider;

(b) a relevant person or payment service provider of a description specified by the designated supervisory authority when the prohibition is imposed; or

(5) A relevant person or payment service provider must take reasonable care to ensure that no individual who is subject to a prohibition under paragraph (2) on having a management role with that relevant person or payment service provider is given such a role, or continues to act in such a role.

Imposition of civil penalties

79

Any one or more of the powers in regulations 76, 77 and 78 may be exercised by a designated supervisory authority in relation to the same contravention.

Injunctions

80

(1) If, on the application of a designated supervisory authority, the court is satisfied—

(a) that there is a reasonable likelihood that any person will contravene a relevant requirement; or

(b) that any person has contravened a relevant requirement and that there is a reasonable likelihood that the contravention will continue or be repeated,

the court may make an order restraining (or in Scotland an interdict prohibiting) the contravention.

(2) If on the application of a designated supervisory authority the court is satisfied—

(a) that any person has contravened a relevant requirement; and

(b) that there are steps which could be taken for remedying the contravention,

the court may make an order requiring that person, and any other person who appears to have been knowingly concerned in the contravention, to take such steps as the court may direct to remedy it.

(3) If, on the application of a designated supervisory authority, the court is satisfied that any person may have—

(a) contravened a relevant requirement; or

(b) been knowingly concerned in the contravention of a relevant requirement,

the court may make an order restraining (or in Scotland an interdict prohibiting) that person from disposing or otherwise dealing with any assets belonging to that person which it is satisfied that that person is reasonably likely to dispose of or otherwise deal with.

(4) The jurisdiction in this regulation is exercisable by the High Court and the Court of Session.

(5) In paragraph (2), references to remedying a contravention include references to mitigating its effect.

The FCA: disciplinary measures (procedure)

81

(1) When determining the type of sanction, and level of any penalty, to be imposed on a person (“P”) under regulation 76, 77 or 78, the FCA must take into account all relevant circumstances, including where appropriate—

(a) the gravity and the duration of the contravention or failure;

(b) the degree of responsibility of P;

(d) the amount of profits gained or losses avoided by P;

(e) the losses for third parties caused by the contravention or failure;

(f) the level of co-operation of P with the FCA;

(g) previous contraventions or failures by P; and

(h) any potential systemic consequences of the contravention or failure.

(1A) Before imposing a sanction on P under regulation 76, 77 or 78, the FCA must check whether P has any criminal convictions that may be relevant to the determination referred to in paragraph (1).

(2) If the FCA proposes to impose a sanction on P under regulation 76, 77 or 78 it must give P a warning notice.

(3) Where the FCA proposes to impose a penalty on a PRA-authorised person or on a person who has a qualifying relationship with a PRA-authorised person, it must consult the PRA.

(4) Section 387 of FSMA (warning notices) applies in relation to a notice given under paragraph (2) as it applies in relation to a warning notice given by the FCA under that Act, subject to paragraph (5).

(5) In complying with section 387(1)(a), a warning notice must—

(a) if it is about a proposal to publish a statement, set out the terms of the statement;

(b) if it is about a proposal to impose a penalty, specify the amount of the penalty;

(i) state the period for which the suspension, limitation or restriction is to have effect,

(ii) sets out the terms of the suspension, limitation or other restriction;

(d) if it is about a proposal to cancel, state the date from which the cancellation is to have effect;

(e) if it is about a proposal to impose a prohibition on an individual, set out the terms of the proposed prohibition.

(6) If the FCA decides to impose a sanction on P under regulation 76, 77 or 78 it must without undue delay give P a decision notice.

(7) If the decision is to publish a statement, the decision notice must set out the terms of the statement.

(8) If the decision is to impose a penalty, the decision notice must specify the amount of the penalty.

(9) If the decision is to impose a suspension, limitation or other restriction, the decision notice must—

(a) state the period for which the suspension, limitation or restriction is to have effect;

(b) sets out the terms of the suspension, limitation or other restriction.

(10) If the decision is to cancel a permission, registration or authorisation, the decision notice must state the date from which the cancellation is to have effect.

(11) If the decision is to impose a prohibition on an individual, the decision notice must set out the terms of the prohibition.

(12) Section 388 of FSMA (decision notices) applies in relation to a decision notice given under paragraph (6) as it applies in relation to a decision notice given by the FCA under FSMA, subject to paragraph (13).

(13) Section 388 of FSMA has effect for the purposes of paragraph (12) as if—

(a) in subsection (1)(e)(i) for “this Act” there were substituted “ regulation 93(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ”, and

(b) subsections (1A) and (2) were omitted.

The FCA: procedure (general)

82

(1) Sections 389 (notices of discontinuance), 390 (final notices) and 392 (application of sections 393 and 394) to 395 (the FCA's and PRA's procedures) of FSMA apply in relation to a warning notice given under regulation 81(2) and a decision notice given under regulation 81(6) as they apply in relation to a warning notice or decision notice given under FSMA, subject to paragraphs (2) to (3).

(2) Section 390 of FSMA has effect as if—

(a) for subsection (4) there were substituted—

(4) A final notice about a cancellation, suspension, limitation or other restriction under regulation 77 or 78 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“the 2017 Regulations”) must— (a) specify the permission, authorisation or registration which is being cancelled, suspended or the terms of the limitation or other restriction being imposed, and (b) give details of— (i) the date on which the cancellation, suspension, limitation or other restriction has effect, and (ii) the period for which the suspension, limitation or other restriction is imposed. (4A) A final notice about a prohibition under regulation 78 of the 2017 Regulations must— (a) specify the extent of the prohibition; and (b) give details of the date on which the prohibition has effect, and if relevant the period for which it has effect.

(b) subsections (6), (7) and (10) were omitted.

(3) Section 392 of FSMA has effect as if for paragraphs (a) and (b) there were substituted—

(a) a warning notice given under regulation 81(2) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“the 2017 Regulations”); (b) a decision notice given under regulation 81(6) of the 2017 Regulations.

The Commissioners: disciplinary measures (procedure)

83

(1) When determining the type of sanction, and level of any penalty, to be imposed on a person (“P”) under regulation 76 or 78, the Commissioners must take into account all relevant circumstances, including where appropriate—

(a) the gravity and the duration of the contravention or failure;

(b) the degree of responsibility of P;

(d) the amount of profits gained or losses avoided by P;

(e) the losses for third parties caused by the contravention or failure;

(f) the level of co-operation of P with the Commissioners;

(g) previous contraventions or failures by P; and

(h) any potential systemic consequences of the contravention or failure.

(1A) Before imposing a sanction on P under regulation 76, 77 or 78, the Commissioners must check whether P has any criminal convictions that may be relevant to the determination referred to in paragraph (1).

(2) Where the Commissioners decide to impose a penalty or publish a statement under regulation 76, or impose a prohibition under regulation 78, the Commissioners must give P a notice in accordance with paragraph (3).

(3) A notice must be given of—

(a) the Commissioners' decision—

(i) to impose a penalty, and the amount of the penalty;

(ii) to publish a statement, and the terms of the statement;

(iii) to impose a prohibition, and the terms of the prohibition;

(b) the Commissioners' reasons for imposing a penalty, publishing a statement or imposing a prohibition;

(d) the right to appeal under regulation 99.

(4) A notice about a penalty must—

(a) state the manner in which and the period within which, the penalty is to be paid;

(b) give details of the way in which the penalty may be recovered if it is not paid by the date stated in the notice.

Publication: the FCA

84

(1) Where a warning notice is given by the FCA under regulation 81(2), neither the FCA nor any person to whom it is given or copied may publish the notice or any details concerning it.

(2) Where the FCA gives a decision notice under regulation 81(6), the FCA must publish on their official website such information about the matter to which the notice relates as it considers appropriate, subject to paragraphs (3) to (9).

(3) Where the FCA publishes information under paragraph (2) or (4) about a matter to which a decision notice relates and the person to whom the notice is given refers the matter to the Upper Tribunal (see regulation 93), the FCA must, without undue delay, publish on its official website information about the status of the appeal and its outcome.

(4) Subject to paragraph (5), (6) and (9) where the FCA gives a final notice, it must, without undue delay, publish on its official website information on the type and nature of the breach and the identity of the person on whom the sanction or measure is imposed.

(5) Subject to paragraph (8) and (9), information about a matter to which a final notice relates must be published in accordance with paragraph (6) where—

(a) the FCA considers it to be disproportionate to publish the identity of a legal person on whom the sanction or measure is imposed following an assessment by the FCA of the proportionality of publishing the person's identity;

(b) the FCA considers it to be disproportionate to publish the personal data of the individual on whom the sanction or measure is imposed following an assessment by the FCA of the proportionality of publishing the personal data; or

(c) the publication of information under paragraph (4) would jeopardise the stability of the financial markets or an ongoing investigation.

(6) Where paragraph (5) applies, the FCA must—

(a) defer the publication of the information about a matter to which a final notice relates until such time as paragraph (5) ceases to apply; or

(b) publish the information on an anonymous basis if publication on that basis would ensure the effective protection of any anonymised personal data in the information.

(7) Where paragraph (6)(b) applies, the FCA may make such arrangements as to the publication of information (including as to the timing of publication) as are necessary to preserve the anonymity of the person on whom the sanction or measure is imposed.

(8) The FCA may make arrangements for the postponed publication of personal data that is anonymised in information it publishes under paragraph (6)(b) if—

(a) the publication of the data is postponed for a reasonable period of time; and

(b) the FCA considers that paragraphs (5)(b) and (6)(b) will no longer apply in respect of that data at the time of the postponed publication.

(9) Information about a matter to which a final notice relates must not be published if publication in accordance with paragraph under paragraph (6) is considered by the FCA insufficient to ensure—

(a) that the stability of the financial markets would not be put in jeopardy; or

(b) that the publication of the information would be proportionate with regard to sanctions or measures which are considered by the FCA to be of a minor nature.

(10) Where the FCA publishes information in accordance with paragraphs (2) to (8), the FCA must ensure that the information remains on its official website for at least five years, unless the information is personal data and the data protection legislation requires the information to be retained for a different period.

(11) For the purposes of this regulation, “personal data” has the same meaning as in Parts 5 to 7 of the Data Protection Act 2018 (see section 3(2) and (14) of that Act).

Publication: the Commissioners

85

(1) Where the Commissioners give a notice under regulation 83, the Commissioners must publish on their official website such information about the matter to which the notice relates as they consider appropriate, subject to paragraphs (2) to (8).

(2) Where the Commissioners publish information under paragraph (1) or (3) about a matter to which a notice under regulation 83 relates and the person to whom the notice is given refers the matter to the tribunal (see regulation 99), the Commissioners must, without undue delay, publish on their official website information about the status of the appeal and its outcome.

(3) Subject to paragraph (4), (5) and (8) where the Commissioners give a notice under regulation 83, they must, without undue delay, publish on their official website information on the type and nature of the breach and the identity of the person on whom the sanction or measure is imposed.

(4) Subject to paragraph (7) and (8), information about a matter to which a notice under regulation 83 relates must be published in accordance with paragraph (5) where—

(a) the Commissioners consider it to be disproportionate to publish the identity of a legal person on whom the sanction or measure is imposed following an assessment by the Commissioners of the proportionality of publishing the person's identity;

(b) the Commissioners consider it to be disproportionate to publish the personal data of the individual on whom the sanction or measure is imposed following an assessment by the Commissioners of the proportionality of publishing the personal data; or

(c) the publication of information under paragraph (3) would jeopardise the stability of the financial markets or an ongoing investigation.

(5) Where paragraph (4) applies, the Commissioners must—

(a) defer the publication of the information about a matter to which a notice under regulation 83 relates until such time as paragraph (4) ceases to apply; or

(b) publish the information on an anonymous basis if publication on that basis would ensure the effective protection of any anonymised personal data in the information.

(6) Where paragraph (5)(b) applies, the Commissioners may make such arrangements as to the publication of information (including as to the timing of publication) as are necessary to preserve the anonymity of the person on whom the sanction or measure is imposed.

(7) The Commissioners may make arrangements for the postponed publication of personal data that is anonymised in information they publish under paragraph (5)(b) if—

(a) the publication of the data is postponed for a reasonable period of time; and

(b) the Commissioners consider that paragraphs (4)(b) and (5)(b) will no longer apply in respect of that data at the time of the postponed publication.

(8) Information about a matter to which a notice relates must not be published if publication in accordance with paragraph under paragraph (5) is considered by the Commissioners insufficient to ensure—

(a) that the stability of the financial markets would not be put in jeopardy; or

(b) that the publication of the information would be proportionate with regard to sanctions or measures which are considered by the Commissioners to be of a minor nature.

(9) Where the Commissioners publish information in accordance with paragraphs (1) to (7), the Commissioners must ensure that the information remains on their official website for at least five years, unless the information is personal data and the data protection legislation requires the information to be retained for a different period.

(10) For the purposes of this regulation, “personal data” has the same meaning as in Parts 5 to 7 of the Data Protection Act 2018 (see section 3(2) and (14) of that Act).

CHAPTER 3 — Criminal offences, penalties and proceedings etc.

Criminal offence

86

(1) A person who contravenes a relevant requirement imposed on that person is guilty of an offence and liable—

(a) on summary conviction—

(i) in England and Wales, to imprisonment for a term not exceeding three months, to a fine or to both;

(ii) in Scotland or Northern Ireland, to imprisonment for a term not exceeding three months, to a fine not exceeding the statutory maximum or to both;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years, to a fine, or to both.

(2) In deciding whether a person has committed an offence under paragraph (1), the court must decide whether that person followed—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) any relevant guidance which was at the time—

(i) issued by the FCA; or

(ii) issued by any other supervisory authority or appropriate body and approved by the Treasury.

(3) A person is not guilty of an offence under this regulation if that person took all reasonable steps and exercised all due diligence to avoid committing the offence.

(4) Where a person has been convicted of an offence under this regulation, that person is not also to be liable to a sanction under Chapter 2 of this Part.

Offences of prejudicing investigations

87

(1) This regulation applies if a person (“P”) knows or suspects that an appropriate officer is acting (or proposing to act) in connection with an investigation into a potential contravention of a relevant requirement which is being or is about to be conducted.

(2) P commits an offence if—

(a) P makes a disclosure which is likely to prejudice the investigation; or

(b) P falsifies, conceals, destroys or otherwise disposes of, or causes or permits the falsification, concealment, destruction or disposal of, documents which are relevant to the investigation.

(3) P does not commit an offence under paragraph (2)(a) if—

(a) P does not know or suspect that the disclosure is likely to prejudice the investigation;

(b) the disclosure is made in the exercise of a function under these Regulations, or in compliance with a requirement imposed by or under these Regulations;

(c) the disclosure is made in the exercise of a function, or in compliance with a requirement imposed, by or under the Terrorism Act 2000 ;

(d) the disclosure is made in the exercise of a function, or in compliance with a requirement imposed, by or under the Proceeds of Crime Act 2002 ;

(e) the disclosure is made in the exercise of a function, or in compliance with a requirement imposed, under any Act relating to criminal conduct or benefit from criminal conduct; or

(f) P is a professional legal adviser and the disclosure falls within paragraph (6).

(4) Criminal conduct is conduct which—

(a) constitutes an offence in any part of the United Kingdom; or

(b) would constitute an offence in any part of the United Kingdom if it occurred there.

(5) A person benefits from conduct if that person obtains property as a result of or in connection with the conduct.

(6) Subject to paragraph (7), a disclosure falls within this paragraph if it is a disclosure—

(a) to (or to a representative of) a client of the professional legal adviser in connection with the giving by the adviser of legal advice to the client; or

(b) to any person in connection with legal proceedings or contemplated legal proceedings.

(7) A disclosure does not fall within paragraph (6) if it is made with the intention of furthering a criminal purpose.

(8) P does not commit an offence under paragraph (2)(b) if—

(a) P does not know or suspect that the documents are relevant in connection with the investigation; or

(b) P does not intend to conceal any facts disclosed by the documents from any appropriate officer acting in connection with the investigation.

(9) A person guilty of an offence under paragraph (2) is liable—

(a) on summary conviction—

(i) in England and Wales, to imprisonment for a term not exceeding three months, to a fine or to both,

(ii) in Scotland or Northern Ireland, to imprisonment for a term not exceeding three months, to a fine not exceeding the statutory maximum or to both;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or to both.

(10) For the purposes of this regulation—

“appropriate officer” means—an officer of the FCA, including a member of the FCA's staff or an agent of the FCA;an officer of Revenue and Customs;an employee or agent of a professional body listed in Schedule 1 who is authorised by the body to act on behalf of the body for the purposes of this Part; ora relevant officer;

“relevant officer” means—in Great Britain, an officer of a local weights and measures authority;in Northern Ireland, an officer of the Department for the Economy;acting pursuant to arrangements made with the FCA or with the Commissioners for the purposes of these Regulations.

Information offences

88

(1) A person (“P”) commits an offence if, in purported compliance with a requirement imposed on P by or under these Regulations, P provides information to any person which is false or misleading in a material particular, and—

(a) P knows that the information is false or misleading; or

(b) P is reckless as to whether the information is false or misleading.

(2) A person guilty of an offence under paragraph (1) is liable—

(a) on summary conviction—

(i) in England and Wales, to imprisonment for a term not exceeding three months, to a fine or to both,

(ii) in Scotland or Northern Ireland, to imprisonment for a term not exceeding three months, to a fine not exceeding the statutory maximum or to both;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

(3) A person who discloses information in contravention of a relevant requirement is guilty of an offence and liable—

(a) on summary conviction—

(i) in England and Wales, to imprisonment for a term not exceeding three months, to a fine or to both,

(ii) in Scotland or Northern Ireland, to imprisonment for a term not exceeding three months, to a fine not exceeding the statutory maximum or to both;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

(4) It is a defence for a person charged with an offence under paragraph (3) of disclosing information to prove that they reasonably believed—

(a) that the disclosure was lawful; or

(b) that the information had already and lawfully been made available to the public.

Proceedings: general

89

(1) Proceedings for an offence under these Regulations may be instituted by—

(a) order of the Commissioners;

(b) a local weights and measures authority;

(d) the Director of Public Prosecutions; or

(e) the Director of Public Prosecutions for Northern Ireland.

(2) Where proceedings under paragraph (1) are instituted by order of the Commissioners, the proceedings must be brought in the name of an officer of Revenue and Customs.

(3) A local weights and measures authority must, whenever the FCA or (where the authority is acting pursuant to arrangements made with the Commissioners) the Commissioners require, report in such form and with such particulars as the FCA or the Commissioners require on the exercise of its functions under these Regulations.

(4) Where the Commissioners investigate, or propose to investigate, any matter with a view to determining—

(a) whether there are grounds for believing that an offence under these Regulations has been committed by any person; or

(b) whether a person should be prosecuted for such an offence,

that matter is to be treated as an assigned matter within the meaning of section 1(1) of the Customs and Excise Management Act 1979 (interpretation) .

(5) Paragraphs (1) and (3) do not extend to Scotland.

(6) In its application to the Commissioners acting in Scotland, paragraph (4)(b) is to be read as referring to the Commissioners determining whether to refer the matter to the Crown Office and Procurator Fiscal Service with a view to the Procurator Fiscal determining whether a person should be prosecuted for such an offence.

Proceedings: jurisdiction

90

(1) Proceedings against any person for an offence under these Regulations may be taken before the appropriate court in the United Kingdom having jurisdiction in the place where that person is for the time being.

(2) Proceedings against any person for an offence under these Regulations which cannot be taken under paragraph (1) may be taken at any appropriate court in the United Kingdom.

(3) An offence falling under these Regulations which is committed wholly or partly outside the United Kingdom may for all incidental purposes be treated as having been committed within the jurisdiction of the court where proceedings were taken.

Proceedings: partnership or unincorporated association

91

(1) Proceedings for an offence alleged to have been committed by—

(a) a partnership must be brought in the name of the partnership; or

(b) an unincorporated association must be brought in the name of the association,

and not in that of its members.

(2) A fine imposed on—

(a) a partnership on its conviction of an offence is to be paid out of the funds of the partnership; and

(b) an unincorporated association on its conviction of an offence is to be paid out of the funds of the association.

(3) Rules of court relating to the service of documents are to have effect as if a partnership or unincorporated association were a body corporate.

(4) In proceedings for an offence brought against a partnership or an unincorporated association—

(a) section 33 of the Criminal Justice Act 1925 (procedure on charge of offence against corporation) and Schedule 3 to the Magistrates' Courts Act 1980 (corporations) apply as they do in relation to a body corporate; and

(b) section 18 of the Criminal Justice (Northern Ireland) Act 1945 (procedure on charge) and Schedule 4 to the Magistrates' Courts (Northern Ireland) Order 1981 (corporations) apply as they do in relation to a body corporate.

Offence by bodies corporate, partnership or unincorporated association

92

(1) If an offence under this Part committed by a body corporate is shown—

(a) to have been committed with the consent or the connivance of an officer of the body corporate; or

(b) to be attributable to any neglect on the part of an officer,

the officer (as well as the body corporate) is guilty of the offence and is liable to be proceeded against and punished accordingly.

(2) If the affairs of a body corporate are managed by its members, paragraph (1) applies in relation to the acts and defaults of a member in connection with their functions of management as if the member was a director of the body.

(3) If an offence under this Part committed by a partnership is shown—

(a) to have been committed with the consent or the connivance of an officer; or

(b) to be attributable to any neglect on the part of an officer,

that officer (as well as the partnership) is guilty of the offence and is liable to be proceeded against and punished accordingly.

(4) If an offence under this Part committed by an unincorporated association (other than a partnership) is shown—

(a) to have been committed with the consent or the connivance of an officer of the association; or

(b) to be attributable to any neglect on the part of an officer,

that officer (as well as the association) is guilty of the offence and is liable to be proceeded against and punished accordingly.

PART 10 — Appeals

CHAPTER 1 — Decisions of the FCA

Appeals against decisions of the FCA

93

(1) A person may appeal to the Upper Tribunal a decision by the FCA under—

(a) regulation 25(2), to issue a direction;

(b) regulation 59(1), to refuse to register an applicant;

(ca) regulation 74C(1), to impose a direction;

(d) regulation 76, to impose a penalty or publish a censuring statement;

(e) regulation 77, to take a measure set out in paragraph (2)(a) or (b) of that regulation;

(f) regulation 78(2), to impose a prohibition.

(2) The provisions of Part 9 of FSMA (hearings and appeals), apply, subject to the modifications set out in paragraph (3), in respect of appeals to the Upper Tribunal made under this regulation as they apply in respect of references made to that Tribunal under that Act.

(3) Part 9 of FSMA has effect as if—

(a) in section 133 (proceedings before Tribunal: general provision), in subsection (7A) , after paragraph (o) there were inserted—

(p) a decision to take action under any of regulations 76 to 78 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

; and

(b) for section 133A there were substituted—

(133A) (1) The action specified in a decision notice given under regulation 81(6) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 must not be taken— (a) during the period within which the matter to which the notice relates may be referred to the Tribunal under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017; and (b) if the matter is so referred, until the reference, and any appeal against the Tribunal's determination, has been finally disposed of. (2) The Tribunal may, on determining a reference under these Regulations in respect of a decision of the FCA, make recommendations as to its regulating provisions or its procedures.

CHAPTER 2 — Decisions of the Commissioners

Offer of review

94

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