HM Revenue and Customs
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New money laundering regulations' application deadline
Businesses required under new regulations to identify and prevent money laundering and terrorist financing have until 30 September 2008 to apply to register.
HM Revenue & Customs (HMRC) is reminding Trust or Company Service Providers (TCSPs) and Accountancy Service Providers (ASPs) that they must send in application forms by 30 September 2008.
Forms and guidance can be downloaded from the HMRC website and a helpline will also assist customers.
HMRC's Deputy Director of Money Laundering Regulations (MLR), Mark Tibbitts, said:
"We need TCSPs and ASPs to send in their forms by 30 September 2008 so we can finalise the register and target our resources at the important job of ensuring that businesses' anti-money laundering controls are effective.
"TCSPs must submit 'fit and proper' application forms, used to check the background of applicants, by the same date.
"TCSPs and ASPs should look at the guidance on our website, which explains what they have to do."
The new registration dates and updated guidance were announced in July 2008 after discussions with businesses. The MLRs came into force on 15 December 2007.
The new guidance for TCSPs includes:
* Non executive directors falling within the scope of the regulations only when they act as a director for firms with high risk business; and
* Will-writing is outside the scope of the regulations.
The new guidance for ASPs includes:
* Customs practitioners that fall within the scope of the regulations when they carry out accountancy services or provide tax advice; and
* ASPs that fall within the regulated sector whose only customers are other ASPs who are supervised will not be required to register with HMRC when they fulfil certain conditions.
Notes for editors
1. On 15 December 2007, the Money Laundering Regulations 2007 came into effect. These revoke and replace the 2003 regulations and bring new businesses under the supervision of HMRC. The regulations also impose a new fit and proper test for people in positions of ownership or control in MSBs and TCSPs, and require businesses to implement risk-sensitive systems and controls to identify and prevent money laundering and terrorist financing. The guidance was updated in July 2008.
HMRC already supervises MSBs and High Value Dealers (HVDs) for compliance with existing Money Laundering Regulations. The new regulations extend this supervision to ASPs as well as TCSPs.
MSBs need to register with HMRC unless they are already supervised by the FSA. ASPs need to register with HMRC unless they are already supervised by a designated professional body. TCSPs need to register with HMRC unless they are supervised by a designated professional body or FSA. All HVDs are required to register with HMRC.
2. As part of transitional arrangements for the introduction of the regulations, different registration deadlines have been set for existing businesses (ie those trading on 15 December 2007).
* The deadline for existing TCSPs to submit applications for registration is 30 September. The deadline for applications to register for existing MSBs 1 February 2008.
* 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 MSBs, HVDs or TCSPs must register with HMRC before they start trading.
* All ASPs not already supervised by one of the professional bodies listed in schedule 3 of the regulations are required to be on the register by 1 January 2009.
3. The fit and proper test is an objective negative-criteria check of the background of an applicant intended to disrupt criminal access to the MSB and TCSP sectors.
4. HMRC has been working with the other supervisory authorities appointed under the Money Laundering Regulations 2007. They include the Financial Services Authority, the Office of Fair Trading, the Gambling Commission and professional bodies for lawyers and accountants.
5. 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).
6. For details go to: http://www.hmrc.gov.uk/mlr/reg-summary.htm or call 0845 010 9000 (Monday - Friday, 8am to 8pm).
Issued by HM Revenue & Customs Press Office
Website: http://www.hmrc.gov.uk
