Part 8: Financial sanctions Section 146: Power to impose monetary penalties
Subsection (1) enables the Treasury to impose a monetary penalty in cases where it is satisfied that, on the balance of probability (that is, the civil standard of proof), a person has breached a requirement or prohibition of any financial sanctions legislation (as defined in section 143(4)). Monetary penalties will be used to deal with cases where the extent and circumstances of the breach means it is not in the public interest to purse a criminal prosecution and where the level of the breach or conduct of the individual or organisation is such that a mere warning letter is unlikely to bring about a sufficient change in behaviour. Requirements or prohibitions included in financial sanctions legislation typically include the following: not making funds or other economic resources available to, or for the benefit of, a designated person; directly or indirectly, and not dealing with their funds or economic resources, without a licence from the Treasury; failing to comply with the terms of the licence or provide information as requested.
	Subsections (3) and (4) set out the permitted maximum of a monetary penalty at either £1,000,000 or 50% of the total value of the breach, whichever is the greater. So, for example, where the total value of the breach was £600,000 the maximum monetary penalty would be £1 million, but in a case where the total value of the breach was £10 million, the maximum monetary penalty would be £5 million.
	Subsection (5) defines funds and economic resources in accordance with the financial sanctions legislation which has been breached. Generally funds include, but are not limited to, cash, cheques, money orders, bills of sale and so on. Economic resources are any asset which is not funds but which can be used to obtain funds, goods or services.
	Subsections (6) to (10) require the Treasury to keep the permitted maximum amount under review and enable it to amend the amounts specified, consulting other bodies or persons as appropriate. The £1 million limit may be varied by regulations, subject to the affirmative procedure.
	Subsections (11) and (12) provide that monetary penalties are to be recoverable as civil debts, and are to be paid into the Consolidated Fund. Subsection (13) provides that no monetary penalty can be imposed upon the Crown.