(1) The Bank of England may require a recognised person to pay a penalty in respect of a compliance failure.

(2) A penalty -

(a) must be paid to the Bank, and

(b) may be enforced by the Bank as a civil debt owed to the Bank.

(3) The Bank must prepare a statement of the principles which it will apply in determining -

(a) whether to impose a penalty, and

(b) the amount of a penalty.

(4) The Bank must -

(a) publish the statement on its website,

(b) send a copy to the Treasury,

(c) review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and

(d) in applying the statement to a compliance failure, apply the version in force when the failure occurred.