How to register with HMRC – MLR 2007

The following information relates to businesses needing to register with HMRC under the Money Laundering Regulations 2007.

Contents

Q. Do I need to register with HM Revenue & Customs (HMRC)?

A. HMRC is responsible for supervising:

  • Money Service Businesses or MSBs - these are bureaux de change, money transmitters and third party cheque cashers.
  • High Value Dealers or HVDs - are businesses that deal in goods and accept (or are prepared to accept) a payment or payments in cash of at least 15,000 euros in total, whether the transaction is executed in a single operation or in several operations that appear to be linked. For an indication of the £ sterling equivalent of 15,000 euros we recommend you check our Rates of Exchange for Customs and Vat purposes and divide 15,000 by the Euro figure stated.
  • Accountancy Service Providers or ASPs – include bookkeepers, payroll agents, tax consultants
  • Trust or Company Service Providers or TCSPs – include:
    • businesses, including recruitment agencies, involved in arranging for someone to act as either a permanent or interim director, shadow director or company secretary or partner of a partnership
    • personal service companies of interim managers acting as either a permanent or interim director, shadow director or company secretary or partner of a partnership
    • company formation agents
    • suppliers of accommodation or correspondence addresses for businesses other than sole proprietors and people acting as professional trustees
    • will writers and family offices (when not supervised by a professional body or the FSA), when they act or arrange for others to act as professional trustees

Although we have given you some examples of businesses affected we recommend you check our full registration guidance (PDF 1MB) to see if you need to register and apply anti-money laundering controls to your business.

Q. What must I do?

A. You need to:

  • put anti money laundering systems in place so that you can identify and prevent money laundering and report any suspicious transactions.

register with us:

  • pay an annual fee based on the number of premises through which you trade
  • report changes during the registration year
  • If your business is a TCSP or MSB, any person who runs or owns the business, and your nominated officer or money laundering reporting officer, will need to apply for a new fit and proper test

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Q. How do I register?

A. We have issued a registration summary to help new and existing businesses know when they need to register with HMRC and what forms need to be completed and sent to us.

The forms that you will need to register are available in our forms section along with guidance notes to help you complete the forms and details of where to send them.

Q. How much is it to register?

A. The fee to register with HMRC for the period 1 June 2007 to 31 May 2008 is £95 per premises

Q. What is the fit and proper test?

A. A fit and proper test be applied to those who effectively run, or are beneficial owner, of a money service business or a trust or company service provider.

The fit and proper test will check individuals against a number of objective criteria set out in the new Money Laundering Regulations. The intention is to deny the riskiest individuals access to the Money Service Businesses (MSBs) and Trust or Company Service Providers (TCSPs) sectors. HMRC will perform these checks at registration using an array of internal and external information sources. If any of these criteria are met, HMRC will have to refuse the application.

Q. Do I have to apply for a fit and proper test?

A. The fit and proper test will be applied to all money service businesses and trust or company service providers, at the time of registration, in respect of:

  • the applicant
  • a person who effectively directs or will direct the business
  • a beneficial owner of the business or
  • any nominated officer of the applicant.

In practice, this means all sole proprietors, partners, directors and nominated officers will need to be tested, as will certain shareholders and trustees.

Q. How do I apply for a fit and proper test?

A. If your business is a MSB or TCSP then those applicants that need to apply for a fit and proper test will need to:

  • Ensure that each applicant completes form MLR 101 (PDF 243K). Guidance notes (PDF 106K) are available to help you.
  • Each applicant will need to sign their form, and you will then need to return them with your registration application and the appropriate fee/s.
  • It is a criminal offence to make a false statement in order to register. Applicants will not be registered if the information provided is found to be false or misleading.

Q. How much is a fit and proper test?

A. There is a one off fee for each applicant, payable at the time of registration. The current fee is £50.

Q. What do I need to do if information on my registration or fit and proper test application changes?

A. If you become aware of any changes to the information provided in your registration or fit and proper test application you must notify us within 30 days of the change.

Q. How do I get the forms I need?

A. Our forms and the guidance notes you need to complete them are available on our forms section.

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