This Practice Note explains the Office of Financial Sanctions Implementation’s (OFSI) power to impose monetary penalties for breaches of financial sanctions, when they can be imposed, the factors which will be considered by OFSI in determining the appropriate penalty amount and the process which will be followed when imposing the penalty. It explains the potential available discounts, including the Voluntary Disclosure and Co-operation discount, the Early Access Scheme discount and the Settlement Scheme discount, as well as explaining the availability of fixed monetary penalties for information, reporting and licensing offences. The Practice Note also sets out the review and appeals process for challenging a monetary penalty. OFSI monetary penalty powers Section 146 of the Policing and Crime Act 2017 (PCA 2017) empowers OFSI to impose civil monetary penalties for breaches of financial sanctions prohibitions and failures to comply with financial sanctions requirements. Since 15 June 2022, OFSI has the power to impose a monetary penalty where it is satisfied, on the balance of probabilities, that the person has breached a prohibition

The management of the economy by the use of interest rates and money supply.

The ever-increasing popularity of smartphones, tablets and other personal computing devices has created substantial demand among users for applications (apps) that can be used on those devices. This demand has created opportunities for companies and individuals to develop a wide array of apps to meet users’ needs. However, monetising apps is not always straightforward. This Practice Note: • examines the relevant background and terminology of apps • explains the various approaches that developers have taken to monetisation of apps • highlights contractual issues that are likely to arise in this context, and • provides a summary of other relevant legal issues There are numerous ways to monetise apps and, for the most part, there is no single approach for addressing the legal challenges that may arise. Consequently, this Practice Note focuses on the most commonly adopted approaches in the market. Developers should be aware that the monetisation of apps is an area of rapid development and change, and care is needed to select the most appropriate approach. Terminology Definitions The following terms are of particular importance to this

Money may be defined as a medium of exchange and is generally accepted in the final discharge of debts and the payment of goods and services.

This Practice Note addresses the requirements under Part 6 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) for those firms required to register with the Financial Conduct Authority (FCA) for supervision under the MLRs as follows: • Cryptoasset Exchange Providers and Custodian Wallet Providers (together, Cryptoasset Businesses) • Annex 1 Financial Institutions (referred to in this Practice Note as Annex 1 firms) (for example, businesses performing activities such as financial leasing, commercial lending (eg forfeiters and trade financiers) and safe custody services) • firms authorised by the FCA under FSMA 2000, intending to undertake: ◦ Money Service Business (MSB) activity ◦ Trust and Company Service Provider (TCSP) activity Such firms are defined in the MLRs; for detailed definitions, including relevant guidance, see Practice Note: Money Laundering Regulations 2017 (MLRs)—financial services firms in scope. Cryptoasset Businesses are currently required to register with the FCA under the MLRs for AML/CTF supervision purposes. The government is implementing

This Practice Note considers the Financial Conduct Authority’s (FCA) statutory powers under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLRs). It considers: • the FCA’s supervisory duties under the MLRs, including requirements on the FCA to make disclosures to the National Crime Agency (NCA) • the FCA’s duties to co-operate with other supervisory authorities, including overseas regulators • the FCA’s investigation and enforcement powers for civil breaches of the MLRs including information requests, the powers to fine, censure or impose restrictions on firms, or apply to court for an injunction • the FCA’s criminal powers to prosecute offences under the MLRs, and • the FCA’s approach to actions for civil or criminal breaches of the MLRs set out in its Enforcement Guide (ENFG) For information on FCA supervisory priority areas in anti-money laundering (AML), counter-terrorist financing (CTF), and counter-proliferation financing (CPF), the financial services sectors it considers to be most vulnerable to money laundering, and common AML/CTF breaches identified

This Practice Note considers the application of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLRs) to financial services firms. This Practice Note provides: • an overview of the MLRs • guidance and FCA regulatory rules relating to the MLRs • the requirements of the MLRs around: ◦ risk assessments, policies, controls and procedures ◦ staff training ◦ customer due diligence (CDD) including enhanced due diligence (EDD) and simplified due diligence (SDD) ◦ beneficial ownership information, the UK register of trusts, and reporting discrepancies in registers • the statutory framework of the MLRs—background and reform Key points Key points to note: • the MLRs apply to a wide variety of sectors; this Practice Note considers their application to financial services firms • the FCA supervises compliance with the MLRs by firms authorised by the FCA under the Financial Services and Markets Act 2000 (FSMA 2000) • the FCA also supervises compliance with the MLRs by certain unregulated businesses in the

This Practice Note considers which financial services firms are in scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLRs). Firms within scope of the MLRs must comply with obligations designed to prevent money laundering (ML), terrorist financing (TF) and proliferation financing (PF). The MLRs apply to entities falling within the definition of Relevant Persons in Part 2 of the legislation. For financial services firms, these include credit institutions, financial institutions (including Annex 1 financial institutions and money service businesses (MSBs)), cryptoasset exchange providers, custodian wallet providers, trust or company service providers (TCSPs) and auction platforms. These firms are either authorised by the Financial Conduct Authority (FCA) under the Financial Services and Markets Act 2000 (FSMA 2000) or registered with the FCA for supervision under the MLRs. This Practice Note examines the scope of those definitions and the circumstances in which firms fall within them. For an overview of the UK’s anti-money laundering (AML), counter-terrorist financing (CTF) and counter-proliferation

1 General information Review period [Insert review period] Date of review [Insert date] Person(s) conducting review [Insert name(s)] 2 Data Criteria In the last [insert period, eg quarter] Over the last 12 months Total number of Suspicious activity reports (SARs) received [Insert number] [Insert number] Number of SARs relating to money laundering, terrorist financing or proliferation financing [Insert number] [Insert number] Number of SARs relating to money laundering, terrorist financing or proliferation financing reported to the National Crime Agency (NCA) [Insert number] [Insert number] Number of SARs relating to money laundering, terrorist financing or proliferation financing reported to the NCA requiring consent/a defence (DSARs) [Insert number] [Insert number] Number of DSARs for which consent has been granted [Insert number] [Insert number] Number of DSARs for which consent has been refused [Insert number] [Insert number] Number of DSARs reported to the NCA for which a decision on consent is awaited [Insert number] [Insert number] Number of SARs relating to money laundering, terrorist financing or proliferation financing not reported to the NCA [Insert number] [Insert number] Number of superSARs received [Insert number] [Insert number] Number of CDD company information discrepancy reports made [Insert number] [Insert number] Number of Politically exposed persons (PEPs) added to the PEP central list [Insert number] [Insert number] 3 Review and findings

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, impose obligations on organisations in relation to beneficial owners. This Practice Note: • explains: ◦ the concept of beneficial ownership ◦ who is categorised as a beneficial owner, and ◦ what is required by way of customer due diligence (CDD) measures • covers: ◦ requirements for certain customers to supply information about their beneficial owners, and ◦ what information is available via beneficial ownership registers • provides guidance on: ◦ what use you can/should make of information contained in these registers when conducting CDD, and ◦ the requirement to report discrepancies in beneficial ownership information This Practice Note is not intended to be a guide for corporate bodies or trusts on their obligations in relation to their own beneficial ownership information under the MLR 2017. The guidance in this Practice Note is of general application. You should check whether the MLR

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, impose obligations on firms in relation to beneficial owners. This Practice Note: • explains: ◦ the concept of beneficial ownership ◦ who is categorised as a beneficial owner, and ◦ what is required by way of client due diligence (CDD) measures • covers: ◦ requirements for certain clients to supply information about their beneficial owners, and ◦ what information is available via beneficial ownership registers • provides guidance on: ◦ what use you can/should make of information contained in these registers when conducting CDD ◦ the requirement to report discrepancies in beneficial ownership information, and ◦ SRA approval of beneficial owners, etc It is intended to provide guidance to law firms when dealing with corporate bodies and trusts and their own SRA obligations in relation to beneficial ownership. This Practice Note is not intended to be a guide for

This Precedent Independent audit register can be used to maintain a record of independent audits undertaken by an organisation to monitor compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended. It has been pre-populated with sample entries, which should be deleted before use. This Precedent reflects expectations set out in Legal Sector Affinity Group (LSAG) AML Guidance for the Legal Sector, but it is sufficiently