HM REVENUE AND
CUSTOMS News Release (NAT 07/08) issued by The Government News
Network on 13 February 2008
HM Revenue &
Customs (HMRC) is urging Trust or Company Service Providers
(TCSPs) to register their businesses with HMRC by 1 April 2008
under the new Money Laundering Regulations (MLR), which came into
force on 15 December 2007. TCSPs need to register with HMRC by the
deadline if they want to carry on in business.
At the same time, HMRC is alerting Accountancy Service Providers
(ASPs) that they will be able to register with HMRC from 1 April
2008. Applications received before that date will be held for
processing immediately the register opens.
ASPs need to apply before 1 July 2008 to give HMRC sufficient
time to process their application by the deadline. Businesses that
apply late risk not being included on the register when it opens
on 1 October. If that happens they will not be able to trade
legally until they are included on the register.
Under the new MLRs that came into force on 15 December 2007,
TCSPs and ASPs have to be supervised by a designated professional
body in order to carry on trading. If they are not already
supervised by a designated professional body, or for TCSPs the
Financial Services Authority, they need to be registered with HMRC.
HMRC's Business Director Money Laundering Regulations,
Melissa Tatton said:
"These regulations are important because they build on
existing anti money laundering controls. Setting up registers is a
vital first step in knowing who is subject to our supervision so
we can help them build effective, proportionate, risk based
controls against criminal activity.
"We have already alerted TCSPs on the website and through
advertising in the press that they have to register their business
under the MLRs. We are trying to ensure that TCSPs register at the
right time so they do not fall short of the Regulations.
"We also want Accountancy Service Providers to send in their
forms as soon as possible after 1 April 2008, to ensure that they
are registered with us before the register goes live on 1 October."
For additional information, please see the website. Website link:
http://www.hmrc.gov.uk/mlr/
Notes for editors
1. On 15 December 2007, The Money Laundering Regulations 2007
came into effect. They revoke and replace the 2003 Regulations.
The new Regulations bring new businesses under the supervision of
HMRC, a new fit and proper test for people in positions of
ownership or control in MSBs and TCSPs, and require businesses to
implement risk-based systems and controls to help prevent money
laundering and terrorist financing.
HMRC already supervised MSBs and HVDs for compliance with
existing Money Laundering Regulations. The new regulations extend
this supervision to ASPs as well as TCSPs.
ASPs, MSBs and TCSPs 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. Registration deadlines
As part of the transitional arrangements around the introduction
of the Regulations, registration deadlines have been set for
existing businesses (i.e. those trading on 15 December 2007).
The registration deadlines for businesses are:
* 1 April 2008 for TCSPs;
The registration deadline for Money Services Businesses was:
* 1 February 2008 for MSBs;
Existing HVDs will re-register with HMRC as a part of the annual
process by which they renew their registration.
From 15 December 2007, any new MSB, HVD or TCSP must register
with HMRC before they commence trading.
From 1 April 2008 the register for Accountancy Service Providers
(ASPs) will be formed.
Existing ASPs (who are not already supervised by one of the
professional bodies listed in schedule 3 of the Regulations) will
be required to be registered by 1 October 2008.
ASPs must apply to register by 1 July in order to guarantee that
we can process their application by 1 October. From 1 October all
ASPs will be required to register before they start trading.
3. 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 new '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 new MLR101 fit and proper form for all
relevant people within the business as part of their registration application.
4. 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.
5. Working in Partnership
HMRC has been working with the Financial Services Authority, the
Office of Fair Trading and the Gambling Commission, all of whom
also received supervisory responsibilities under the Money
Laundering Regulations 2007. HMRC is also working with
professional bodies for lawyers and accountants that will also be
responsible for monitoring their members' compliance with the Regulations.
6. Fees for registration and fit and proper tests.
There is a registration fee of £95 per premise for businesses
registering with HMRC. There is a £50 fee per person for
applicants for the fit and proper test (MSBs and TCSPs only).
Issued by HM Revenue & Customs Press Office
Website ww w.hmrc.gov.uk