Paragraph 20 Penalties for failure to complyF1

(1)

If the Secretary of State has reasonable grounds to believe that a bank—

(a)

has failed to comply with a requirement imposed by or under this Schedule, and

(b)

has no reasonable excuse for the failure,

the Secretary of State may impose on the bank a penalty of £500.

(2)

The Secretary of State may not impose a penalty before giving the bank an opportunity to make representations about their compliance.

(3)

The Secretary of State imposes a penalty by giving the bank a notice of the penalty (a “penalty notice”).

(4)

A penalty notice must state—

(a)

the amount of the penalty,

(b)

the period within which it must be paid, and

(c)

the bank’s right to appeal against the penalty.

(5)

The Secretary of State may vary or revoke a penalty notice by giving a notice to that effect to the bank.

Annotations

F1: Sch. 3ZA inserted (2.12.2025 but only for the purposes of making regulations, 24.6.2026 in so far as not already in force) by Public Authorities (Fraud, Error and Recovery) Act 2025 (c. 28), s. 109(2)(b), Sch. 5 (with s. 105); S.I. 2026/601, reg. 2(1)(g)