HM REVENUE AND
CUSTOMS News Release (Ref:NAT 72/07) issued by The Government News
Network on 13 November 2007
HM Revenue &
Customs (HMRC) is urging businesses to be prepared for the new
Money Laundering Regulations (MLRs) that come into effect on 15
December 2007.
The new Regulations will affect: Money Service Businesses (MSBs);
Trust or Company Service Providers (TCSPs); High Value Dealers
(HVDs); and Accountancy Service Providers (ASPs).
HMRC's Business Director of Money Laundering Regulations,
Melissa Tatton said:
"With just over a month to go until the Regulations come in,
affected businesses need to have the right processes in place.
"Businesses should familiarise themselves with the Money
Laundering Regulations guidance on our website, http://www.hmrc.gov.uk/mlr
to help them put in place anti-money laundering controls.
"It's critical that all businesses that have to
register with us get their applications in before the legal
deadline for their sector, and we recommend sending them in early.
Any business that thinks they may be affected should take a look
at our website to find out more about when and how to apply."
Notes for editors
1. On 15 December 2007, The Money Laundering Regulations 2007
will come into effect. They will revoke and replace the 2003
Regulations. The new Regulations will 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 will
require businesses to implement risk-based systems and controls to
help prevent money laundering and terrorist financing.
HMRC already supervises 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 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. 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
proposed registration deadlines for businesses are:
* 1 February 2008 for MSBs;
* 1 April 2008 for TCSPs;
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.
HMRC intends to open a register for ASPs on 1 April 2008, with a
registration deadline of 1 July 2008. Once the ASP register is
closed in October 2008, any new ASP must register with HMRC before
they commence 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.
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk