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ECSH83725 | Sanctions for non-compliance: suspension and cancellation: issuing a suspension or cancellation notice

From HM Revenue & Customs · Economic Crime Supervision Handbook

Once the decision maker (DM) has decided to suspend or cancel the registration a notice must be issued to the business.

The notice must contain the following:

  1. HMRC’s decision and the date (immediately or in the future), see ECSH83625 from which the suspension or cancellation takes effect.

  1. How long the suspension will last, see ECSH83825.

  1. The grounds on which the decision is based and evidence to support this.

  1. The right to review of the decision under regulation 94 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017).

  1. The right to appeal a decision under regulation 99 MLR 2017.

  1. You must set out what the business must do in order for HMRC to decide to lift the suspension. Some cases include those where risks necessitate an immediate cessation of relevant activity, but it seems possible that additional relevant information or understanding of the situation will be available from further work; and we may wish to follow an immediate suspension with a cancellation notice if further HMRC analysis confirms that satisfactory remediation is unlikely and that a cancellation is more appropriate.

Important Note: Failure to include the details at points 1 to 6 will invalidate the notice, so the business will still be registered and allowed to continue with regulated activity.

The notice must be addressed to the business at their registered office address. Copies of the notice can be issued to any representative, officer of the business or the business trading address, under a separate covering letter.

The decision maker (DM) needs to follow the guidance on publishing details of the non-compliant when a notice to suspend or cancel a registration has been issued. For more information on publishing details of the non-compliant (PDNC), including technical and operational guidance, see ECSH100000.

A suspension and cancellation notice is subject to a sanctions administration charge.