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

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;

(c) failed to comply with Articles 11, 12 or 16 of the funds transfer regulation, where the failure is a serious one;

(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 2009(1);

(iii) the registration of a payment service provider as a small payment institution under the Payment Services Regulations 2009;

(iv) the authorisation of a payment service provider as an authorised electronic money institution under the Electronic Money Regulations 2011(2); 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 2009;

(iii) on the registration of a payment service provider as a small payment institution under the Payment Services Regulations 2009;

(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(3);

(b) “regulated activity” has the meaning given by section 22 of FSMA(4)).

(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.

(1)

S.I. 2009/209.

(2)

S.I. 2011/99.

(3)

Part 4A was substituted by section 11 of the Financial Services Act 2012 (c.21).

(4)

2000 (c.8). Section 22 was amended by section 7 of the Financial Services Act 2012 (c.21).