Money transmitters are subject to the Payment Services Regulations 2009 (PSR) which come into force on 1 November 2009. Businesses that wish to operate as a money transmitter within the UK must be authorised or registered with the Financial Services Authority (FSA) who will regulate them in respect of the general conduct of their business. HM Revenue & Customs (HMRC) will retain its role as the Money Laundering Regulations (MLR) supervisor. Two conditions of FSA registration / authorisation under PSR are that the business is established in the UK and that it is registered with HMRC for MLR.
If your business is established outside the UK, the FSA cannot register you and you will not be able to legally offer money transmission services after 1 November 2009. You will have to register a new, UK incorporated business, with HMRC to enable you to comply with the PSR.
HMRC have contacted some businesses that we know to be affected by this. If you have received a letter from HMRC please follow the guidance contained in it. However, if you do meet the criteria above and have not received a letter from HMRC please call our VAT, Customs and Excise helpline on Tel 0845 010 9000. Tell them that you need to change your MLR registration to comply with the Payment Service Regulations and they will take your contact details and arrange for an officer from the MLR Policy team to contact you to explain the options available to you. Please call the helpline before you send in new registration application forms.
More information, on the Payment Services Regulations, including full details of how to apply, and the necessary forms, can be found on the FSA website. (Opens new window)
You can also call FSA on Tel 0845 606 9966.
All money transmitters who have not already done so are urged to check the FSA website as soon as possible to ensure that they are able to continue to operate within the law.
