WIREDGOV

Registration has started for businesses supervised by the OFT under Government anti-money laundering regulations which aim to reduce the possibility of legitimate businesses being used for money laundering or terrorist financing.

In order to comply with these regulations, certain categories of business need to register with the OFT within six months of registration starting. These are:

• Estate agents - includes residential and commercial estate agencies, relocation agents and property finding services, and
  
  
• Consumer Credit Financial Institutions (CCFIs) - these are organisations involved in consumer credit lending activity which are not authorised by the Financial Services Authority (FSA) or supervised by Her Majesty's Revenue and Customs (HMRC) as a money service business.

Any business seeking more information on the regulations should see Money Laundering Regulations 2007.

The OFT has a duty to supervise these businesses effectively to ensure they are complying with their legal obligations in relation to anti-money laundering. The OFT has powers to impose financial penalties and/or bring prosecutions under the regulations.

The OFT will be writing to relevant businesses in the UK, to remind them that they have until 31 January 2010 to be on the OFT register.

Carrying on business as an estate agent or CCFI after that date without being registered is an offence and could result in prosecution.

NOTES

1. The Money Laundering Regulations 2007 came into force on 15 December 2007. They implement the Third Anti Money Laundering Directive. Prior to 15 December 2007 the businesses supervised by the OFT had to comply with the due diligence provisions of the Money Laundering Regulations 2003. They did not have a supervisor.

2. Information on registration (and application forms) is available on the Anti-money laundering registration page.

3. The supervisory regime will be self-funding. The OFT has the power to charge fees to recover the costs of supervision.

4. Fees for an application for registration received during 2009/10 are £115 per premise with:

• a minimum fee of £115, for those firms who have no premises, and
• a maximum fee of £2,300 - equivalent to a firm with 20 premises.

5. For background information on the Money Laundering Regulations 2007 please see Money Laundering Regulations 2007.