HM REVENUE AND
CUSTOMS News Release (NAT 35/08) issued by The Government News
Network on 31 July 2008
New guidance on
registering under the Money Laundering Regulations 2007 is
published today by HM Revenue & Customs (HMRC).
Guidance for Trust or Company Service Providers (TCSPs) and
Accountancy Service Providers (ASPs) has been updated and is
available on HMRC's website to reflect feedback from
businesses in their discussions with HM Treasury.
TCSPs and ASPs, who have not yet applied, will have to submit
their applications to register with HMRC by the new date of 30
September 2008. In addition, TCSPs will need to send in their fit
and proper application forms by the same date.
The new guidance includes clarification for TCSPs that:
* Non executive directors only fall within the scope of the
regulations when they act as a director for firms with high risk business
* Will writing is now outside the scope of the
regulations
and for ASPs that:
* Customs practitioners fall within the scope of the regulations
when they carry out accountancy services or provide tax advice.
HMRC's Business Director, Money Laundering Regulations,
Melissa Tatton said:
"The updated guidance will help businesses decide if they
are required to register with HMRC. It will give businesses
greater clarity and reduce the number of businesses that need to
register with us, whilst retaining effective anti money laundering
measures across all relevant businesses."
HMRC will be writing to TCSPs and ASPs who have already applied
to register and who may be affected by the updated guidance.
Businesses that confirm they no longer need to register will have
their fees refunded.
Further information and the updated MLR 9 Guide to Registration
can be found on the HMRC website at http://www.hmrc.gov.uk/mlr/mlr9-reg-dates-announced.htm.
Businesses can also download registration and fit and proper
application forms to help them apply to register.
Notes for editors
1. On 15 December 2007, The Money Laundering Regulations 2007
came into effect. They revoked and replaced the 2003 Regulations.
The new Regulations brought new businesses under the supervision
of HMRC, a new fit and proper test for people in positions of
ownership or control in Money Service Businesses (MSBs) and TCSPs,
and required businesses to implement risk-based systems and
controls to help prevent money laundering and criminal financing.
HMRC already supervises MSBs and High Value Dealers (HVDs) for
compliance with existing Money Laundering Regulations. The new
regulations extended this supervision to ASPs as well as TCSPs.
ASPs, MSBs and TCSPs will all need to register with HMRC unless
they are already supervised by a designated professional body.
HVDs are already required to register with HMRC.
2. Changes to Guidance for TCSPs and ASPs - Extract from Guidance
What businesses will not be Trust or Company Service Providers?
Some officers of companies or partners of partnerships:
*
Individuals providing their services as company director, company
secretary or partner provided they are not specified above
including;
Any individual providing company director, company
secretary or partner services to:
* A firm already supervised under the MLRs 2007,or
* A public authority, or a firm authorised by a public authority
to act on their behalf where the only customers are public authorities.
Some Trustees
* Sole practitioners and firms who only provide professional
trustee services limited to the following low risk trusts;
* Straightforward express testamentary trusts such as those
creating life interests for spouses or partners, trusts for
persons under dependents or persons under a disability or those
that make provision for a charity.
* Express lifetime trusts created to manage the affairs of a
person under a disability;
Occupational pension schemes and employee share schemes.
Recruiters and employment agencies
* Firms and sole practitioners that only offer to their clients,
in relation to the appointment of persons to act as a company
director, company secretary, partner or professional trustee, the
normal business services of employment agencies and employment
businesses including the activities of;
* Advertising for, headhunting or otherwise searching for
suitable candidates for these positions (whether permanent or temporary)
* The analysis of applications by such candidates and referring
CVs to potential employers
* Conducting preliminary and other interviews of such candidates
* Checking qualifications or references of such candidates
* Drawing up short lists of such candidates and making
recommendations to clients about such candidates which stop short
of actually selecting the final candidate
* Supplying employers with a company director, company secretary,
partner or professional trustee, (including temporary ones) so
long as the employment agency or business does not itself provide
for a person's appointment to a relevant position in the way
described in the example in paragraph 6.1.2.
Other exclusions
* Will writing
ASPs - What types of businesses will be covered?
Businesses covered include;
* Accountants
* Auditors
* Tax Advisers
*
Book-keepers
* Payroll Agents
* Tax consultants
*
Customs Practitioners
* Interim managers undertaking any of
the activities of the businesses listed above.
3. Extension of TCSP and ASP Registration deadlines.
TCSPs were due to register by 1 April and ASPs by 1 July 2008.
On 26 March HMRC announced that the MLR 9 Registration Guidance
for TCSPs would be updated in April to reflect feedback from
businesses in their discussions with HM Treasury about the
interpretation of the regulations as they applied to TCSPs.
On 6 May we announced that we wanted to make sure the right
businesses registered with HMRC, and the guidance for ASPs and
TCSPs was still being finalised.
On 17 June we explained that work was continuing and told
businesses what they needed to do and that we would set a new
application deadline of a minimum of four weeks from the date on
which updated guidance is published.
This current announcement provides the new guidance and gives
businesses over 8 weeks in which to apply to register with us.
4. Registration forms.
To help businesses identify when they need to register, a
registration summary is available at http://www.hmrc.gov.uk/mlr/reg-summary.htm
The two forms on the website that businesses need to familiarise
themselves with are the updated registration form, MLR 100, and
the 'fit and proper test' form, MLR 101. All those
affected (with the exception of existing HVDs, who will be
contacted separately by HMRC) will need to register using the
revised MLR100 registration notice. MSBs and TCSPs, in addition,
will need to complete the MLR101 fit and proper form for all
relevant people within the business as part of their registration application.
5. Fit and Proper Test
The fit and proper test is an
objective negative-criteria check of the background of an
applicant intended to disrupt criminal access to the Money Service
Business and Trust or Company Service Provider sectors.
The number of people in each business subject to the test will
depend on the structure and organisation of that business. Those
subject to the test include sole proprietors, partners in a
partnership, directors of a company, significant shareholders in a
company and the nominated officer of the business.
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk