(1) The Treasury may impose a monetary penalty on a person if it is satisfied, on the balance of probabilities, that the person has committed an offence under regulation 38A(6) (designated persons: reporting obligations).

(2) For the purposes of paragraph (1), any requirement for the person to have acted without reasonable excuse, or with knowledge or recklessness, is to be ignored.

(3) The amount of the penalty under paragraph (1) is to be such amount as the Treasury may determine but it may not exceed the permitted maximum.

(4) Where it is possible to estimate the value of the funds or economic resources of which the Treasury has not been informed under regulation 38A(1), (2) or (5) (as the case may be), the permitted maximum is the greater of -

(a) £1,000,000, and

(b) 50% of the value of the funds or economic resources of which the Treasury has not been informed.

(5) In any other case, the permitted maximum is £1,000,000.

(6) Any monetary penalty payable under this regulation is recoverable by the Treasury as a civil debt.

(7) Any monetary penalty received by the Treasury by virtue of this regulation must be paid into the Consolidated Fund.