Accountancy Service Providers and Money Laundering Regulations
As a tax agent or adviser you must comply with anti-money laundering legislation by putting in place risk sensitive anti-money laundering policies
and procedures to prevent your business from being used by money launderers and terrorists.
- assess the risks of your business being used by criminals to launder money
- check the identity of your clients
- retain records and ensure you have appropriate internal management controls
- monitor your clients' activities and report any suspicious activity to the Serious Organised Crime Agency (SOCA)
You will also need to register with HM Revenue & Customs (HMRC) if you are not already supervised by the Financial Services Authority
(FSA) or a designated professional body.
On this page:
Registration with HMRC
Dependent on what work you carry out for clients, you may need to register with HMRC under Money Laundering Regulations as an Accountancy Service
Provider or a Trust or Company Service Provider - or both.
Accountancy Service Providers are businesses that provide accountancy services, including the recording, review, analysis, calculation or reporting
of financial information and advising on tax.
Trust or Company Service Providers are businesses that:
- form companies or other legal entities
- act or arrange for others to act as directors or company secretaries, or partners
- provide registered offices, correspondence, business or administrative addresses for companies or partnerships
- act or arrange for others to act as trustees of express trusts or similar arrangements
- provide their services as nominee shareholder (unless they are acting for a company whose securities are listed on a regulated market)
Find out more about whether you need to register with HMRC under Money Laundering Regulations by following the link below.
Do you need to register with HMRC for Money Laundering Regulations?
Your role under Money Laundering Regulations
You must have anti-money laundering policies and procedures in place within your business to prevent it being used for money laundering and
These policies and procedures include:
- assessing the risk of your business being used for money laundering
- customer due diligence and ongoing monitoring of customers
- internal controls
- effectively communicating your policies and procedures within your business
- appointing a 'nominated officer' for Money Laundering Regulations and training your employees
- reporting suspicious transactions or activity to the Serious Organised Crime Agency (SOCA)
More about your role under Money Laundering Regulations
Penalties, appeals and Money Laundering Regulations
If you don't comply with the Money Laundering Regulations, HMRC may impose a penalty. In more serious cases they may consider criminal prosecution.
Appealing against an HMRC decision
There may be occasions when you disagree with a decision made by HMRC. If this happens, you may be able to challenge the decision by asking for
it to be reviewed or by appealing to an independent tribunal.
Appeals, penalties and Money Laundering Regulations
More useful links
Anti-money laundering guidance for the accountancy sector from the Consultative
Committee of Accountancy Bodies (Opens new window)