MLR2R1350 - Introduction: Why these businesses are covered by the Regulations

MSBs

Money launderers use MSBs to transmit money or exchange currency, and it is at this point when cash is placed in an MSB, that the money laundering is most likely to be detected. Some criminals set up MSBs for the purpose of money laundering.

TCSPs

Money launderers use TCSPs to set up complex trust and company structures to layer funds or hide their true origin, and accommodation address providers can be used to hide the identity of businesses. Directors of high risk companies and trustees can help identify when there are grounds for suspicion of money laundering or terrorist financing.

HVDs

Money launderers use HVDs to change large amounts of cash into high value assets that they can sell and so hide the criminal origin of the money.

ASPs

Money launderers use ASPs to assist in financial transactions, to launder the proceeds of criminal activity or direct funds to finance terrorism. They will be in a good position to identify money laundering or terrorist financing when they look at their client’s financial records. ASPs are sometimes also TCSPs and can therefore be used as shown above, to set up complex trust and company structures to layer funds or hide their true origin, or can be used as accommodation address providers to hide the identity of businesses.