Money Laundering Regulations apply to a number of different business types. If the regulations apply to you, your business needs to be monitored by a supervisory authority.
It's possible that your business is already monitored, for example because you belong to a designated professional body or because your business is registered with an authority like the Financial Services Authority.
But if your business isn't already monitored, and it falls into one of four designated business sectors, you'll probably need to register with HM Revenue & Customs (HMRC), although there are a few exceptions.
This guide will help you to decide if you need to be registered with HMRC under Money Laundering Regulations.
On this page:
The regulations apply to a number of different businesses, including:
Some businesses covered by the Money Laundering Regulations are already supervised by a designated supervisory authority like the Financial Services Authority (FSA), or by a professional body like the Law Society that acts as a supervisory authority. So they don't need to register with HMRC.
The supervisory authorities are:
There are also designated professional bodies that act as supervisory authorities. These are:
HMRC is the supervisory authority for the following four business types:
If you carry out activities typically associated with the above by way of business and you aren't already registered, you'll need to register with HMRC.
If you're not sure if your business falls within one of these four sectors you can find out more about the activities typically carried out by these businesses (including any exemptions) by following the links below.
Money Service Businesses and Money Laundering Regulations
High Value Dealers and Money Laundering Regulations
Accountancy Service Providers and Money Laundering Regulations
Trust or Company Service Providers and Money Laundering Regulations
Money Service Businesses that are required to register with HMRC and carry out money transmission will also need to be registered or authorised with the FSA under the Payment Services Regulations 2009. The contractual agreements between businesses will affect what type of registration they will need from HMRC and the FSA respectively.
For instance:
How your business is registered is a matter for you but your registration with HMRC and the FSA must be consistent and appropriate. You may have agents, some of whom are registered with the FSA as your agents and others as Small Payment Institutions. You must register all such businesses as agents within your FSA registration and all the individual addresses must be listed on your HMRC MLR registration.
You are responsible for all the activities and anti-money laundering compliance of any premises or agents that are listed under your MLR registration. This includes, but is not limited to the provision of training and the application of your businesses policies and procedures.
Asking the following questions will help you decide how you should register:
Question 1 (who does the customer enter into a contract with?) is very important. Although the agreement with your business partners may show that the customer has a contract with them, what matters is who is responsible to the customer if their money is lost.
HMRC is checking discrepancies between their register and the Financial Services Authority (FSA) register. To make sure your registrations are correct you should urgently check your details with both HMRC and the FSA. If there are any differences you should decide which registration is appropriate and change any registration details that are incorrect.
HMRC cannot tell you how you must register though we may challenge you if we believe your registration is incorrect.
If you have any questions about any of these matters please contact:
The HMRC Helpline on 0845 010 9000 (hearing impaired text phone 0845
000 0200), or email.
For FSA enquiries contact: Firms Contact Centre on 0845 606 9966
or email fcc@fsa.gov.uk.
In most cases you'll know whether you're carrying out an activity by way of business. But sometimes it may be difficult to know for sure. If, having read the guidance you are still unsure, it's a good idea to contact HMRC for further advice.
If you need to contact HMRC for guidance on whether you have to register, you can email the Money Laundering Regulation Central Intervention Team.
Or if you prefer you can write to them at:
MLR Central Intervention Team
HM Revenue & Customs
7th Floor N/W
Alexander House
21 Victoria Avenue
Southend-on-Sea
SS99 1AG
Money services, accountancy services and trust or company services that are provided by certain charities and public sector bodies aren't covered by the Money Laundering Regulations. This is because the services aren't carried out by way of business. So the organisations that provide them don't need to register with HMRC.
The types of charity and public body that don't have to register are:
If you decide that you need to register with HMRC, you can find out what to do by following the link below.
How to register for Money Laundering Regulations
You're committing an offence if you carry on a business activity that's covered by the Money Laundering Regulations and you're not registered with HMRC when you should be.
You may have to pay a penalty if you:
To find out more about penalties, follow the link below.
