Notification of revisions to MLR9 registration notice
The MLR9 (Money Laundering Regulations) registration notice currently published on the MLR website is in draft format. This notification is to bring to your attention two urgent revisions which will be included in the finalised MLR9 notice but which may be relevant to you now if you are considering registering as a High Value Dealer (HVD), or if you are not sure whether you need to pay a registration fee where you do not operate from business premises.
The revisions are in relation to the following paragraphs:
- Paragraph 3.10(2) – Are there any registration exemptions?
- Paragraph 3.13 – Do I have to pay a registration fee?
Revision to paragraph 3.10(2)
Background
The MLRs 2007 introduced an exemption of certain types of activity from the requirements of the MLR. The exemption can apply to Bureau De Change, Cheque Cashers and HVDs, but only where they carry out ‘financial activity’. This has been interpreted in the guidance to mean that where these types of business fulfil all the requirements of the exemption, they will not need to register with HM Revenue & Customs (HMRC).
Revised guidance
The exemption applies to financial activity only. The activity of offering currency exchange and cheque cashing services falls within the definition of financial activity. Therefore the exemption from the Regulations may apply in specific circumstances to these businesses in which case they will not be required to register.
However, HVD activity is not financial activity, and therefore there is no exemption for HVDs from registering with HMRC in these circumstances. The exemption from the Regulations only applies to any financial activity carried out by the HVD, not the activity of acting as a HVD.
The definition of financial activity can be found in Schedule 1 of the Money Laundering Regulations 2007.
Revision to paragraph 3.13
Background
The MLR allows HMRC to charge an appropriate fee to businesses registering to enable HMRC to carry out its role as supervisors. In previous guidance, HMRC has indicated that the fee is premises based and therefore only applies to premises from which relevant business is carried out. Paragraph 3.13 of the new draft MLR9 registration notice reflects this.
Revised guidance
This policy that a registration fee is payable for premises remains the same, however a number of businesses have questioned whether or not they need to pay a fee where they do not carry out their relevant business from business premises. For example accountancy services offered remotely. In this case, a registration fee is still applicable for the principal contact address for the business. MLR9 will be amended to clarify this position in the final version which will be published in due course.
Further help
If you have any queries relating to these changes, please contact our helpline on Tel 0845 010 9000.
