HM Revenue and Customs
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One month to go to new Money Laundering Regulations
HM Revenue & Customs (HMRC) is urging businesses to be prepared for the new Money Laundering Regulations (MLRs) that come into effect on 15 December 2007.
The new Regulations will affect: Money Service Businesses (MSBs); Trust or Company Service Providers (TCSPs); High Value Dealers (HVDs); and Accountancy Service Providers (ASPs).
HMRC's Business Director of Money Laundering Regulations, Melissa Tatton said:
"With just over a month to go until the Regulations come in, affected businesses need to have the right processes in place.
"Businesses should familiarise themselves with the Money Laundering Regulations guidance on our website, http://www.hmrc.gov.uk/mlr to help them put in place anti-money laundering controls.
"It's critical that all businesses that have to register with us get their applications in before the legal deadline for their sector, and we recommend sending them in early. Any business that thinks they may be affected should take a look at our website to find out more about when and how to apply."
Notes for editors
1. On 15 December 2007, The Money Laundering Regulations 2007 will come into effect. They will revoke and replace the 2003 Regulations. The new Regulations will 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 will require businesses to implement risk-based systems and controls to help prevent money laundering and terrorist financing.
HMRC already supervises 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 will 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 proposed registration deadlines for businesses are:
* 1 February 2008 for MSBs;
* 1 April 2008 for TCSPs;
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.
HMRC intends to open a register for ASPs on 1 April 2008, with a registration deadline of 1 July 2008. Once the ASP register is closed in October 2008, any new ASP must register with HMRC before they commence 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.
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk
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