UK Offence Report

1 A payment service provider is guilty of an offence in respect of any transfer of funds to which the…

regulation 14(1) of The Transfer of Funds (Information on the Payer) Regulations 2007 (revoked)

This offence was read from the text as made, and no revised version was available, so a later revocation could not be ruled out. Check the current text at legislation.gov.uk.

What the provision says

1 A payment service provider is guilty of an offence in respect of any transfer of funds to which the payments regulation applies—

a in the case of the payment service provider of the payer, if he fails to comply with any requirement in—

i Article 5(1) read with Article 6(1) (information accompanying transfers of funds within the EEA);

ii Article 5(2) read with Article 5(3) or (4) (whichever is relevant) (verification of information);

iii Article 5(5) (record keeping);

iv Article 6(2) (information to be provided following request);

v Article 7(1) read with Article 7(2) (information accompanying transfers of funds from the EEA to outside the EEA);

b in the case of the payment service provider of the payee, if he fails to comply with any requirement in Article 8 (detection of missing information), 9(1) or the third paragraph of Article 9 (transfers of funds with missing or incomplete information) or Article 11 (record keeping);

c in the case of the intermediary payment service provider, if he fails to comply with any requirement in Article 12 (keeping information on the payer with the transfer) or 13(3), (4) or (5) (use of

a payment system with technical limitations).

Text as made, from legislation.gov.uk. © Crown copyright, reused under the Open Government Licence v3.0. This is the text as originally made; later amendments are not shown here.

Who it binds, and what has to be proved

Binds
a person
Conduct
failing to comply with a notice or direction
Fault element
Mixed — some elements strict, some not
Burden of proof
No statutory defence — prosecution proves everything

The prosecution must prove the conduct, and - for those elements the provision qualifies - the state of mind it names. The remaining elements carry no fault requirement, so they are strict.

The provision states no defence, so the prosecution bears the burden on every element of the offence.

Classifier’s reasoning: the offence itself carries no fault word, but a duty it criminalises by cross-reference uses reasonable cause to believe; which element that governs was not determined.

What would breach regulation 14(1)?

These are illustrations, not law. They are generated from the provision’s own words to show the shape of the offence. Whether any particular conduct is caught depends on the full text, on any amendment since, and on the facts.

  1. Being served with a notice under the Transfer of Funds (Information on the Payer) Regulations 2007 and doing nothing by the date it specifies.
  2. Doing part of what the notice requires, where it required all of it.
  3. Disagreeing with the notice and ignoring it, rather than using whatever appeal the instrument provides.

Penalty

Mode of trial
Either way — magistrates’ court or Crown Court
Maximum fine
£5,000
Maximum prison (summary)
Not determined
Maximum prison (on indictment)
2 years

expressed as the statutory maximum (the prescribed sum): the same words mean £5,000 in England and Wales and £10,000 in Scotland.

Sentencing

Offences of this kind are usually sentenced under the guidelines below. This is a mapping by subject, not a finding about this provision, and the links go to a search of the Sentencing Council’s own site.

Prosecution figures

No published per-offence figure was found for this provision, and it could not be matched to a Ministry of Justice offence code. Offences created by statutory instrument very largely do not have one. Absence of a figure is not evidence that the offence is unused.

Status and lifecycle

Current status
Status not determined
Made
22 November 2007
In force from
15 December 2007
Extent
Not stated

How this was established: read from the text as made; no revised version available, so later revocation could not be ruled out.

What the instrument is for

(This note is not part of the Regulations) — the explanatory note published with the instrument, © Crown copyright.

These Regulations make provision for the enforcement of the obligations set out in EC Regulation 1781/2006/EC of the European Parliament and of the Council of 15th November 2006 on information on the payer accompanying transfers of funds (“the EC Regulation”) (OJ No L 345, 8.12.2006). The EC Regulation imposes obligations on payment services providers when they make or receive a transfer of funds. An impact assessment has been prepared and a copy of this has been placed in the library of each House of Parliament and is available on HM Treasury’s website (www.hm-treasury.gov.uk). Part 2 makes provision for the supervision of payment service providers (individuals or businesses whose business includes services for the electronic transfer of funds on behalf of a payer). Regulation 3 allocates supervisors to payment service providers: those authorised by the Financial Services Authority will be supervised by it; those not so authorised are supervised by Her Majesty’s Revenue and Customs. Regulation 4 sets out the duties on the two supervisors. Regulation 5 enables supervisors to impose charges on providers they supervise for compliance with the EC Regulation. Part 3 provides enforcement powers for the supervisors. These include powers to obtain information from payment service providers and persons connected to them (in regulation 7), to enter and inspect premises (regulations 8 and 9), and to apply to court when a provider has failed to comply with a requirement to produce information to a supervisor (regulation 10). Civil penalties may be imposed by the supervisors under regulation 11 on providers who fail to comply with the requirements of the EC Regulation. Provision is made for reviews of and appeals against such penalties (regulations 12 and 13). Payment service providers and their officers and senior management who fail to comply with the requirements of the EC Regulation may also be guilty of a criminal offence (regulations 14 to 16). Providers convicted of a criminal offence may not also be liable to a civil penalty. Regulation 17 contains provision for the recovery of penalties and charges through the court. Regulation 18 reflects the position under Article 17(2) of the EC Regulation that transfers of funds between the United Kingdom and any of the Crown Dependencies are to be treated as transfers within the United Kingdom. Regulation 19 makes consequential amendments to primary legislation.

Read the full note and every offence in this instrument

Other offences in the same instrument

How this was identified as an offence

Everything above rests on the judgement that this provision creates a criminal offence, rather than mentioning one. That judgement is made by rule, from the words of the provision, and this is the rule that made it — with a confidence of 0.92.

Basis
the provision says a person is “guilty of an offence”
Confidence
0.92 of 1.00

A provision that states a penalty for an offence created elsewhere can read very like one that creates an offence, and the rules can mistake the one for the other. If the text quoted above sets a penalty for something made an offence by another provision, treat the classification on this page with that in mind, and read the instrument.

Check the source