HM Revenue and Customs
 Printable version
|
 E-mail this to a friend
|
Money Laundering Regulations Registration deadline on the horizon
HM Revenue & Customs (HMRC) is urging Trust or Company Service Providers (TCSPs) to register their businesses with HMRC by 1 April 2008 under the new Money Laundering Regulations (MLR), which came into force on 15 December 2007. TCSPs need to register with HMRC by the deadline if they want to carry on in business.
At the same time, HMRC is alerting Accountancy Service Providers (ASPs) that they will be able to register with HMRC from 1 April 2008. Applications received before that date will be held for processing immediately the register opens.
ASPs need to apply before 1 July 2008 to give HMRC sufficient time to process their application by the deadline. Businesses that apply late risk not being included on the register when it opens on 1 October. If that happens they will not be able to trade legally until they are included on the register.
Under the new MLRs that came into force on 15 December 2007, TCSPs and ASPs have to be supervised by a designated professional body in order to carry on trading. If they are not already supervised by a designated professional body, or for TCSPs the Financial Services Authority, they need to be registered with HMRC.
HMRC's Business Director Money Laundering Regulations, Melissa Tatton said:
"These regulations are important because they build on existing anti money laundering controls. Setting up registers is a vital first step in knowing who is subject to our supervision so we can help them build effective, proportionate, risk based controls against criminal activity.
"We have already alerted TCSPs on the website and through advertising in the press that they have to register their business under the MLRs. We are trying to ensure that TCSPs register at the right time so they do not fall short of the Regulations.
"We also want Accountancy Service Providers to send in their forms as soon as possible after 1 April 2008, to ensure that they are registered with us before the register goes live on 1 October."
For additional information, please see the website. Website link: http://www.hmrc.gov.uk/mlr/
Notes for editors
1. On 15 December 2007, The Money Laundering Regulations 2007 came into effect. They revoke and replace the 2003 Regulations. The new Regulations bring new businesses under the supervision of HMRC, a new fit and proper test for people in positions of ownership or control in MSBs and TCSPs, and require businesses to implement risk-based systems and controls to help prevent money laundering and terrorist financing.
HMRC already supervised MSBs and HVDs for compliance with existing Money Laundering Regulations. The new regulations extend this supervision to ASPs as well as TCSPs.
ASPs, MSBs and TCSPs all need to register with HMRC unless they are already supervised by a designated professional body. HVDs are already required to register with HMRC.
2. Registration deadlines
As part of the transitional arrangements around the introduction of the Regulations, registration deadlines have been set for existing businesses (i.e. those trading on 15 December 2007). The registration deadlines for businesses are:
* 1 April 2008 for TCSPs;
The registration deadline for Money Services Businesses was:
* 1 February 2008 for MSBs;
Existing HVDs will re-register with HMRC as a part of the annual process by which they renew their registration.
From 15 December 2007, any new MSB, HVD or TCSP must register with HMRC before they commence trading.
From 1 April 2008 the register for Accountancy Service Providers (ASPs) will be formed.
Existing ASPs (who are not already supervised by one of the professional bodies listed in schedule 3 of the Regulations) will be required to be registered by 1 October 2008.
ASPs must apply to register by 1 July in order to guarantee that we can process their application by 1 October. From 1 October all ASPs will be required to register before they start trading.
3. Registration forms
To help businesses identify when they need to register, a registration summary is available at http://www.hmrc.gov.uk/mlr/reg-summary.htm
The two forms on the website that businesses need to familiarise themselves with are the updated registration form, MLR 100, and the new 'fit and proper test' form, MLR 101. All those affected (with the exception of existing HVDs, who will be contacted separately by HMRC) will need to register using the revised MLR100 registration notice. MSBs and TCSPs, in addition, will need to complete the new MLR101 fit and proper form for all relevant people within the business as part of their registration application.
4. Fit and Proper Test
The fit and proper test is an objective negative-criteria check of the background of an applicant intended to disrupt criminal access to the Money Service Business and Trust or Company Service Provider sectors.
The number of people in each business subject to the test will depend on the structure and organisation of that business. Those subject to the test include sole proprietors, partners in a partnership, directors of a company, significant shareholders in a company and the nominated officer of the business.
5. Working in Partnership
HMRC has been working with the Financial Services Authority, the Office of Fair Trading and the Gambling Commission, all of whom also received supervisory responsibilities under the Money Laundering Regulations 2007. HMRC is also working with professional bodies for lawyers and accountants that will also be responsible for monitoring their members' compliance with the Regulations.
6. Fees for registration and fit and proper tests.
There is a registration fee of £95 per premise for businesses registering with HMRC. There is a £50 fee per person for applicants for the fit and proper test (MSBs and TCSPs only).
Issued by HM Revenue & Customs Press Office
Website ww w.hmrc.gov.uk
