Registration Guide for Trust or Company Service Providers

HMRC Reference:Notice MLR9c (December 2013) View Change History
 

Contents

1.Introduction

1.1 The purpose of this notice

1.2 What is in this notice?

1.3 What other notices should I read?

1.4 Who can I contact for further advice?

2.Registering with H M Revenue & Customs (HMRC): General

2.1 The role of HMRC

2.2 What pieces of legislation do I need to be aware of?

2.3 Do I need to register with HMRC?

2.4 Are charities or public sector bodies required to register?

3.Who needs to register?

3.1 What is a Trust or Company Service Provider (TCSP)?

3.2 What do you mean by ‘by way of business’?

3.3 Registration and fees

3.4 Calculating fees

3.5 The fit and proper test

4.Reporting Changes

4.1 What if any of my business details change after I have registered?

4.2 How do I tell you about changes?

4.3 What if I’m unable to give you the full details of the changes within 30 days?

4.4 What changes do I need to tell you about?

4.5 What happens if I tell you about changes after 30 days?

4.6 How much will a penalty be?

5.Cancellation of a registration

5.1 How do I cancel my registration if I stop trading?

5.2 Can you cancel my registration?

5.3 If my registration is cancelled part way through a year, will I get a refund of some of the fee(s) I paid?

6.Reviews and Appeals

6.1 What can I do if I disagree with any decision you make in relation to my business:

6.2 Can I continue trading during a review of your decision not to register me or to cancel my registration?

7.Where can I find out more information?

8.Appendix 1

9.Glossary of terms

 

Status of the guidance

This guidance is “relevant guidance” which is approved by the Treasury, for the purposes of the Money Laundering Regulations 2007 (MLR 2007). The extent to which a business can demonstrate that this guidance has been followed will be taken into account by HMRC and a court when they decide whether or not there has been a failure to comply with the MLR 2007.

1.Introduction

1.1 The purpose of this notice

This notice will help you find out:

  • if you need to register with us
  • when and how to register
  • what fees you need to pay
  • what the fit and proper test is.

The glossary of terms at the end of this notice will help you understand the technical terms and abbreviations used.

1.2 What is in this notice?

Section 2: Gives a brief overview of the role of HMRC as supervisors and the relevant law.

Section 3: Explains who needs to register as a Trust or Company Service Provider (TCSP) and how.

Section 4: Explains what to do if any of your business details change after you have registered.

Section 5: Explains about de-registration and HMRC’s ability to cancel your registration in certain circumstances.

Section 6: Explains about your right to ask for a review or appeal to a Tribunal.

Section 7: Explains who you need to contact if you need further advice.

Section 8: Lists the supervisory authorities including professional bodies under

1.3 What other notices should I read?

If you decide that you need to register with us you will need to read our notice Anti Money Laundering Guide for Trust or Company Service Providers. This notice explains what your legal responsibilities are once you are registered and the risk based anti money laundering controls, policies and procedures you need to have in place.

Other notices available to download are:

  • Registration Guide for Money Service Businesses
  • Registration Guide for High Value Dealers
  • Registration Guide for Accountancy Service Providers

1.4 Who can I contact for further advice?

By phone:

VAT & Excise helpline: 0300 200 3700 - For all general enquiries relating to the MLRs.

HMRC Anti Money Laundering Supervision: 01702 366312 - For any queries which relate specifically to your registration circumstances, for example, to check the status of your registration application or to arrange for a longer period of time to notify us of changes to your business.

This number cannot answer general queries about the MLRs.

By post:

HMRC Anti Money Laundering Supervision: For all general queries relating to the MLRs requiring a written or e-mail response.

HMRC Anti Money Laundering Supervision Alexander House 21 Victoria Avenue Southend on Sea SS99 1AG

By email: mlrcit@hmrc.gsi.gov.uk

HMRC Anti Money Laundering Supervision: To send your registration application, fit and proper application (if applicable) and appropriate fees to, and for notifying us of any changes to your registration details.

HMRC Anti Money Laundering Supervision Alexander House 21 Victoria Avenue Southend on Sea SS99 1AG

By e-mail: mlrregistrationenquiries@hmrc.gsi.gov.uk

(Note: although we will accept change of circumstances by e-mail we do not currently accept registration applications this way)

2.Registering with H M Revenue & Customs (HMRC): General

2.1 The role of HMRC

Under the Money Laundering Regulations (MLRs), HMRC is the supervisory authority for Money Service Businesses (MSBs), High Value Dealers (HVDs), and some Trust or Company Service Providers (TCSPs) and Accountancy Service Providers (ASPs).

Our role is to maintain a register of these businesses and ensure that these businesses are aware of, and comply with, the requirements of the Money Laundering Regulations 2007 by having appropriate risk based anti money laundering controls in place.

This notice has been produced for TCSPs to explain the registration requirements and how to register. Other notices have been produced separately for MSBs, HVDs and ASPs. More information about these notices can be found in section 1.3.

2.2 What pieces of legislation do I need to be aware of?

The main pieces of UK legislation for Anti Money Laundering and Counter Terrorist Financing are:

  • the Money Laundering Regulations 2007
  • the Proceeds of Crime Act (PoCA) 2002 Part 7
  • the Terrorism Act 2000 (as amended by the Anti-terrorism, Crime and Security Act 2001) (TA).
  • The Counter Terrorism Act 2008.

2.3 Do I need to register with HMRC?

Yes, if you are a Trust or Company Service Provider and are not already supervised for compliance with the Money Laundering Regulations 2007s by the Financial Conduct Authority (FCA) or a professional body (listed in Section 8).

In the course of this guidance we may refer to this activity as relevant business.

2.4 Are charities or public sector bodies required to register?

TCSP activities supplied by the following bodies are not within the scope of the MLRs because they are not carried out ‘by way of business’:

  • Registered charities (in furtherance of their charitable objectives), where the services are provided free or for a nominal charge.
  • Public authorities serving members of the public free or for a fee to cover the expense of providing the service only.
  • Public authorities as part of their statutory duties where a fee is charged.
  • Public authorities funded by the Exchequer or council tax payers and not by the person receiving the service.
  • Public authorities or joint ventures where 50% or more of the shares are owned by the public body and where the only customers are also public authorities.
  • Public authorities and joint ventures (as defined above) to a firm authorised by a public authority to act on their behalf, such as a housing association.

3.Who needs to register?

3.1 What is a Trust or Company Service Provider (TCSP)?

A Trust or Company Service Provider is any firm or sole practitioner who by way of business provides any of the following services to third parties:

(a) forming companies or other legal persons

(b) acting or arranging for another person to act;

(i) as a director or secretary of a company, or

(ii) as a partner of a partnership, or

(iii) in a similar position in relation to other legal persons (see para 3.2.1).

(c) providing a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal person or arrangement;

(d) acting or arranging (see para 3.2.2) for another person to act as;

(i) a trustee of an express trust (see para 3.2.4) or similar legal arrangement, or

(ii) a nominee shareholder for another person other than a company listed on a regulated market which is subject to disclosure requirements consistent with Community legislation or equivalent international standards.

These are “relevant activities” for the purpose of the next paragraph

3.2 What do you mean by ‘by way of business’?

In most cases you will know if you are carrying out a relevant activity by way of business.

If you already know that you are in business you do not need to consider this any further.

If you are unsure whether you are acting by way of business, you will need to consider the following questions:

  • Are you undertaking relevant activity?
  • Do you advertise or publicise the provision of your relevant activity or receive referrals from other businesses?
  • Is the relevant activity carried out with a view to profit?
  • Is the relevant activity actively pursued with reasonable or recognisable continuity?

If the answer to all of these questions is ‘yes’, then you are carrying out the activity by way of business and you will need to register.

If the answer to all of these questions is ‘no’, then you are not carrying out the activity by way of business and you will therefore not need to register.

If you can only answer ‘no’ to some of these questions, and you are still unsure whether you are carrying out relevant activities by way of business, you should contact us by e-mail or in writing providing answers to all the questions above for a decision.

You can do this by emailing us at: mlrcit@hmrc.gsi.gov.uk.

Or write to us at the following address:

HMRC Anti Money Laundering Supervision Alexander House Southend on Sea SS99 1AG

3.2.1 What is a legal person?

A limited company, a partnership and a trustee are legal persons. A sole proprietor and a trust are not legal persons.

3.2.2 What does ‘arranging’ mean?

In the context of paragraphs 3.1 (b) and (d), ‘arranging’ has a narrow meaning. It means the act of putting in order, providing for another person to act as a company director, company secretary, partner, nominee shareholder or trustee.

An example of arranging would be providing clients with a company director, which involves finding the person, selecting them without any further assessment by or consultation with the client, and completing some or all of the formalities associated with their appointment to that position.

Examples of activities that are not considered to be “arranging” in the context of paragraphs 3.1 (b) and (d) can be found in paragraph 3.2.16.

3.2.3 What is meant by ‘director’?

‘Director’ is defined in the Companies Act 2006. If you are formally appointed a director, your name should be contained in the company’s register available for inspection at the registered office and registered at Companies House. If you are not formally appointed but are called a director, you would not be a director within the Companies Act definition, but you may fall within the scope of the regulations as a shadow director.

A shadow director is a person who is not a named director but who does direct or control the business.

3.2.4 What is an express trust?

An express trust is an arrangement where there is a clear and expressed intention to create a trust. In a trust, ownership is divided between the trustees and the beneficiaries: the trustee is given the legal title to the property which gives them the duty to manage and control the property for the benefit of the beneficiaries who are exclusively entitled to the benefit of the property. A trustee can also be a beneficiary of the trust.

3.2.5 What types of businesses will be covered?

  • Company Formation Agents.
  • Providers of registered offices, business addresses, accommodation or correspondence addresses, mail forwarding for businesses other than sole traders or private individuals
  • Any individual or firm providing nominee director, nominee company secretary or nominee shareholder services or other similar services designed to ensure the confidentiality of the true ownership or control of a company or corporate body, or to act in these roles on behalf of another person or firm.
  • Any individual or firm arranging for another person to act as a director, company secretary, partner or professional trustee (in the way described in the example in para 3.1(b)).
  • Any individual or firm offering professional trustee services, unless they relate to certain low risk trusts (as specified in para 3.2.16).
  • Any individual or firm providing their services as nominee shareholder (unless they are acting for a company whose securities are listed on a regulated market).
  • Any firm providing their services as a company director, company secretary, or partner to another firm unless the client firm is a member of the same group as the firm providing the service.
  • Any individual providing their service -

(a) as nominee director or nominee company secretary, or

(b) as company director, company secretary or partner to a firm carrying out business in the following high risk areas;

- within a high risk jurisdiction (see sub-para 3.2.13)

- within a high risk sector (see sub-para 3.2.14)

unless the firm is;

(a) already supervised under the MLRs, or

(b) a public authority, or

(c) a firm authorised by a public authority to act on their behalf where the only customers are also public authorities.

3.2.6 I operate through a Personal Service Company (PSC). Do I fall within scope as a firm or as an individual?

A PSC supplying the services of an individual will only fall within scope to the extent that the individual they represent falls within scope and providing that the PSC:

  • only supplies the services of that individual, and
  • the individual owns or controls at least 50% of the business and the sole business purpose of the company is to provide the services of that individual.

3.17 I operate through a PSC. Do I have to register both my PSC and myself as an individual?

No. You will only have to register your PSC unless you also invoice for relevant business as an individual.

3.2.8 Am I required to register my PSC if I am already supervised as an individual by the FCA or a professional body listed in Section 8?

You will need to check with your supervisor whether your PSC is also supervised by them. If it is not, you will need to register your PSC as a TCSP with HMRC.

3.2.9 I am a company director/company secretary for the company that employs me; am I a TCSP?

No. You are not a TCSP because you are an employee and are not carrying these activities out by way of business so you will not be required to register.

3.2.10 What are nominee services?

Nominee services are used for a number of reasons. One reason is to ensure the confidentiality of persons running or owning limited and other companies from public disclosure requirements that exist in the UK and other jurisdictions. They preserve the secrecy of persons who would rather not disclose their direct relationship with a particular corporate body.

3.2.11 What do nominee directors or secretaries do?

Nominee directors fulfil the legal or nominal requirements of the role but either have little actual involvement in the management or administration of the company or if they have any active role they will exercise it on the instructions of another person.

3.2.12 What is a nominee shareholder?

A nominee shareholder is an individual or company that holds shares and other securities on behalf of investors. Nominee shareholders are used for administrative or legal reasons or to ensure the confidentiality of a beneficial owner of a company.

3.2.13 What is a high risk jurisdiction?

This will include a jurisdiction noted by the Financial Action Task Force (FATF) as having weak anti money laundering systems. Guidance on high risk jurisdictions can be found on the financial crime pages of HM Treasury website at

http://www.hm-treasury.gov.uk/

3.2.14 What is a high risk sector?

  • A firm carrying out frequent cash transactions of €15,000 or more.
  • A company operating within the UK but incorporated outside the UK in a non-equivalent jurisdiction.
  • A company with a holding interest in their capital held in the form of unregistered bearer shares.

3.2.15 What is an equivalent jurisdiction?

This is a country with anti money laundering systems/countering terrorist finance regimes of similar quality to those of the EU.

A list of countries considered to have equivalent anti money laundering and countering terrorist financing regimes can be found on the financial crime pages of HM Treasury website at http://www.hm-treasury.gov.uk/

3.2.16 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 in para 3.2.5 including;
  • Any individual providing company director, company secretary or partner services to:

(i) a firm already supervised under the MLRs 2007; or

(ii) a public authority; or

(iii) 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

(i) Straightforward express testamentary trusts such as those creating life interests for spouses or partners, trusts for persons under 25, dependents or persons under a disability or those that make provision for a charity.

(ii) Express lifetime trusts created to manage the affairs of a person under a disability.

(iii) Occupational pension schemes and employee share schemes.

(iv) 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;

(i) advertising for, headhunting or otherwise searching for suitable candidates for these positions (whether permanent or temporary)

(ii) the analysis of applications by such candidates and referring CVs to potential employers

(iii) conducting preliminary and other interviews of such candidates

(iv) checking qualifications or references of such candidates

(v) drawing up short lists of such candidates and making recommendations to clients about such candidates which stop short of actually selecting the final candidate

(vi) 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.

Other exclusion:

  • Will writing.

3.2.17 What is a public authority?

This is a body within the EU (including the UK) that fulfils the conditions in para 2 of schedule 2 of the MLRs and includes Government departments, local authorities, NHS Trusts and public corporations, executives and advisory bodies.

3.2.18 Are discretionary trusts low risk trusts?

Other than occupational share schemes and employee share schemes in low-risk trusts specified in sub-paragraph 3.2.16 which may contain some discretionary element, discretionary trusts will not be low-risk trusts.

3.2 .19 I am a director of the trustee company of a low risk trust. Am I a TCSP?

No. If you are a director of a company that exclusively acts as trustee for a low risk trust specified in sub-para 3.2.16 you will not be a TCSP.

3.2.20 provide company services to businesses by forwarding their mail. Will I be required to register?

Yes. If you undertake these activities on behalf of a company or partnership.

I provide office accommodation. Is my business within the scope of the regulations?

No, the right to physically occupy your premises is not the same as the right to use your address.

If you rent out premises or grant a right or licence to occupy a space this is this is the provision of the premises, not the provision of an address

The provision of premises includes everything from a formal rental agreement for a set of office/light industrial units to the hire of a room or part of an office for a few hours.

I operate a business providing a virtual office service is this business within the scope of the regulations?

Yes - if you provide services such as answering phone calls and emails, mail forwarding and other related administrative services along with the provision of a business address or an accommodation address.

I provide office accommodation by renting out physical space to customers and I also provide admin services to these customers such as secretarial services and phone and e-mail answering services. Is my business within the scope of the regulations?

No - You are not within the scope of the regulations if you are providing a physical space to your customers

I provide a business /correspondence /accommodation address. Is this within the scope of the regulations?

Yes - If you provide another firm with the right to use your address as a place where customers or others can send correspondence.

This does not apply where customers are sole traders or private individuals

3.2.21 I use dormant companies to act as company directors, company secretaries, partners and trustees for clients. Am I a TCSP?

A dormant company that does not charge for their services as a TCSP will not fall within scope of the regulations because they are not acting "by way of business" but the business appointing the dormant company as a corporate trustee (subject to the exemptions for low risk trusts) or corporate director will fall within scope of the regulations because they are “arranging”.

3.2.22 When do I need to register?

You must be registered with HMRC before carrying on business as a TCSP. You can find out more about how to register in the next section.

3.3 Registration and fees

3.3.1 How do I register?

You need to complete registration form MLR100.

You must make sure you provide all the information requested in the application form, otherwise we cannot process your application or register your business.

You will also need to complete form MLR101 for the fit and proper test. You can find out more about this test later on in this section. Once completed, you should return the forms and the appropriate fees to:

HMRC Anti Money Laundering Supervision Alexander House 21 Victoria Avenue Southend on Sea SS99 1AG

NOTE: We may ask for additional information after receiving your registration application. In this case we will tell you what information we need and why.

3.3.2 Do I have to pay a fee?

Yes. The MLRs allow us to charge a fee, which is payable at the time of your application to register and will be payable annually on the anniversary of your date of registration. The fee enables us to cover the cost of carrying out our role as a supervisor. These costs include registering new businesses, carrying out visits to premises, and producing guidance and information for businesses.

You must list in your application and pay a fee for each premises through which you carry on business as a TCSP.

You will also need to notify us of and pay a fee for any new premises you list under your registration through the year. More information about adding premises can be found in paragraph 3.4.8.

The level of the fee is reviewed annually. You can check how much the fee is on the HMRC internet site, or contact our VAT & Excise helpline on 0300 200 3700.

You can find out more information about how to calculate how much you should pay later on in this section.

3.3.3 Will I have to pay a fee for the fit and proper test (f&p)?

Yes. More information about the f&p test can be found later on in this section.

3.3.4 How do I pay the fees?

When you first apply to register, you will need to pay your registration and f&p fees by cheque payable to HM Revenue & Customs. You may include all the fees in one cheque.

Once you are registered, you can pay your renewal fees either:

  • by cheque
  • by BACS quoting your MLR Registration number
  • by CHAPS quoting your MLR Registration number.

You can find out about making payments by BACS or CHAPS by contacting HMRC Anti Money Laundering Supervision in Southend on 01702 366312.

3.3.5 Will fees be refunded if you decide not to register me?

Yes. If we refuse your application to register on any of the grounds covered in this notice we will refund your registration fee

However the fee for the fit & proper test covers the cost to us of carrying out the test so this will not be refunded. You can find out more information about the fit & proper test in section 3.5.

3.3.6 Will I receive a registration certificate?

Yes. You will receive a certificate of registration which is notification of your MLR Registration number and confirms the details we have for your business. It is important you check these details to ensure we have processed your registration correctly, and notify us immediately of any inaccuracies.

You need to be aware that being registered and having a certificate as a TCSP is not an endorsement by HMRC of your business practices.

3.3.7 Do I have to renew my registration annually?

No, but you do have to pay a fee annually for all your listed premises for your business to remain registered. If you do not pay the correct fee, we may cancel your registration.

3.3.8 Will I receive reminders to pay my annual fee?

Yes. We will send a reminder letter towards the end of your registration year. The reminder will show the registration details we hold for your business, and tell you how much you will need to pay.

If you do not need your registration to continue you should notify us so we can remove you from the register.

3.3.9 What are my obligations under the MLRs 2007 once I am registered?

We have produced a notice Anti Money Laundering Guide for TCSPs, which explains in detail all your obligations under the MLRs and gives practical guidance about how you can meet them. It also explains our powers to impose penalties and prosecute for failing to comply. You can download this notice from the HMRC Website http://www.hmrc.gov.uk/mlr

3.3.10 What happens if I don’t register under the Regulations?

If you carry on business as a TCSP and are not registered with us, you are committing an offence.

We may impose penalties for;

Failure to register a relevant business. This includes but is not limited to the following:

(a) carrying on business as a TCSP without being registered

(b) continuing to carry on business as a TCSP after having your registration cancelled.

3.3.11 How much will a penalty be?

The amount will depend on your individual case. We will take a number of things into consideration when deciding this, for example;

  • whether it was you who informed us you were not registered or we discovered it
  • your reasons for not registering
  • whether you have had any previous warning or penalties.

These are only examples and we may take other things into consideration.

3.4 Calculating fees

3.4.1 How do I calculate the registration fees I must pay?

You will need to pay a fee for each of your premises included on your application form.

If you do not operate from business premises and carry out TCSP activity either at your own domestic premises or premises belonging to someone else, you will need to pay a fee for your principal contact address. Your principal contact address is the address through which we can contact you, make arrangements to visit you and see all your records relating to your relevant business.

3.4.2 What do you mean by premises?

For the purpose of calculating fees, premises means any place from which you carry on business as a TCSP. Examples include;

  • Offices
  • Shops
  • Domestic premises
  • Agents premises

3.4.3 Do I have to register each of my premises separately?

No, you must list all the premises out of which you operate in your application to register, and you will need to pay a fee for each one.

3.4.4 What if I provide my services from my home address?

You will need to list and pay a fee for your home address as the premises at which you carry on business as a TCSP.

3.4.5 Are there any premises which I do not need to include in my registration application?

Yes. You do not need to list and pay a fee for any premises;

from which you do not carry on any business as a TCSP, for example premises solely used for -

- Storage of business records

- Employee training

- General management of employees.

  • which do not belong to you but which you may attend in order to carry out some of your relevant activity, for example, clients addresses
  • which are outside the UK.

3.4.6 I am a principal with agents. Do I need to list and pay a fee for my agent’s premises in my registration application or do they need to register themselves?

If you act as a principal and provide services to your customer through an agent you must list all your agents’ premises and pay a fee for each one. If the agent only provides services on your behalf they do not need to register separately.

If you agree with another business that they will provide services to the public on your behalf then you are acting as the principal and the other business will be your agent.

If you are not sure which premises you will need to list in your registration application, or you are an agent and are not sure whether you need to register and pay a fee for yourself, you can phone the VAT & Excise helpline in the first instance on 0300 200 3700.

3.4.7 I am an agent and have been included in the registration of my principal. I also conduct business that is not carried out for my principal. Do I have to register?

Yes, you must register for services you provide which are not done on behalf of your principal. If you are an agent and are not sure whether or not you need to register for your own business you can phone the VAT and Excise Helpline on 0300 200 3700.

3.4.8 What if I list new premises under my registration part way through the year – do I have to pay the full fee for those premises?

If you want to list new premises under your registration in the first six months of the year you will need to pay the full fee for each premises.

If you want to list new premises under your registration in the second six months of the year you will need to pay half the fee for each premises.

3.4.9 What if I remove premises from my registration part way through my registration year – will I get a part year refund?

No.

3.5 The fit and proper test

3.5.1 What is the fit and proper test?

The f&p test is a legal requirement for TCSPs and is part of the registration process. It is not subject to an annual renewal process or annual fee, though there is a one-off fee when you submit your application for the test.

3.5.2 Who needs to apply for the f&p test?

The following individuals within the business will need to submit an application for the test:

  • the registration applicant
  • all partners of the business
  • all persons who effectively direct or will direct the business including all company directors and shadow directors whether UK based or overseas where applicable
  • any beneficial owners of the business where applicable
  • the nominated officer where applicable.

3.5.3 Will people joining a business after registration be subject to the f&p test

Yes. If someone from the above list joins a business after it becomes registered they must apply for the fit and proper test.

3.5.4 What is a beneficial owner?

In the case of a body corporate a beneficial owner is any individual who:

  • in the case of a body other than a company listed on a regulated market, ultimately owns or controls (whether through direct or indirect ownership or control, including through bearer shareholdings) more than 25% of the shares or voting rights in the body; or
  • in the case of a body corporate, exercises control over the management of the body.

In the case of a partnership, beneficial owner means any individual who:

  • is entitled to or controls more than 25% of the capital or profits of the partnership or more than 25% of the voting rights, or
  • otherwise exercises control over the management of the partnership.

In the case of a complicated company structure where more than 25% of the shares are controlled by another company, it will be necessary to check that no single individual controls more than 50% of the shares of that company. Provided that no individual exercises that level of control there is no need to extend the f&p test beyond the registered business.

3.5.5 Is there a fee?

Yes. There is a one off fee for each person applying for the test, payable at the time of submitting the f&p application form. This may be subject to change, so if you are not sure what the fee is when you, or a relevant individual within your business are submitting an application for the f&p test you should check on the HMRC internet site, or contact our VAT & Excise helpline on 0300 200 3700.

3.5.6 Will f&p fees be refunded if an applicant fails the test?

No. The fee pays for the f&p test to be carried out.

3.5.7 How do I apply for the f&p test?

Each applicant will need to complete the f&p application form MLR101.

The applicant will need to sign their form and you as the business applying to register will then need to return the form(s) with the appropriate fee(s).

It is a criminal offence to make a false statement in order to register. Businesses will not be registered if the information provided by f&p applicants is found to be false or misleading.

If you become aware of any changes to the information provided in your f&p application you must notify HMRC Anti Money Laundering Supervision either in writing at the address given earlier on in this section or by phone on 01702 366312 within 30 days of the change.

3.5.8 How will f&p applications be processed?

On receipt of an f&p application, we will undertake a number of checks to confirm the accuracy of the information provided.

This will include checking details against information held by us, other regulatory authorities, government and law enforcement agencies.

In some cases we may ask applicants to attend one of our offices to answer any questions concerning the application before completing the process. Written notice will be sent to applicants in this case, stating where and when this will take place.

We will notify you within 45 days of receiving your application of our decision to either register your business or refuse registration. If we ask for any additional information this 45 day period will be extended.

In the event that we decide not to register your business we will notify you of our decision and offer you the opportunity to request a review of our decision. You can accept the offer of a review or can appeal to a Tribunal within 30 days of our decision letter. You can find more information about this at section 6.

3.5.9 Under what circumstances would an applicant fail the f&p test?

For the purposes of the MLRs 2007, a person is not a f&p person if they:

have been convicted of -

(i) an offence under the Terrorism Act 2000

(ii) an offence under paragraph 7(2) or (3) of Schedule 3 to the Anti-Terrorism, Crime and Security Act 2001

(iii) an offence under the Terrorism Act 2006

(iv) an offence under Part 7 of PoCA 2002

(v) an offence listed in Schedule 2, 4 or 5 of PoCA 2002

(vi) an offence under the Fraud Act 2006

(vii) an offence under section 72(1), (3) or (8) of the Value Added Tax Act 1994

(viii) the common law offence of cheating the public revenue

  • have been adjudged bankrupt or in respect of whom sequestration of his estate has been awarded and (in either case) has not been discharged
  • are subject to a disqualification order under the Company Directors Disqualification Act 1986(a), or has effectively directed a business which has consistently failed to comply with the requirements of the Act
  • are or have been subject to a confiscation order or recovery order under PoCA 2002
  • have consistently failed to comply with the requirements of the MLRs
  • have consistently failed to comply with the requirements of regulation 2006/1781/EC of the EU Payments Regulation
  • have effectively directed a business which has consistently failed to comply with the requirements of the Money Laundering Regulations and/or the Payments Regulation
  • are otherwise not a fit and proper person with regard to the risk of money laundering or terrorist financing.

3.5.10 What will HMRC take into account in deciding if an applicant is “otherwise not fit and proper with regard to the risk of money laundering or terrorist financing”?

We will take into account any convictions from another country similar to those set out in paragraph 3.5.9. We will also consider any evidence which suggests the applicant poses a significant risk of money laundering or terrorist financing through a business they are employed by or in control of.

3.5.11 What happens if one or more applicants within my business fail to pass the f&p test?

We will not accept your registration application and will notify you in writing of that decision and offering you a review. You can accept a review of our decision or can appeal to a Tribunal within 30 days of our decision letter. More information about this can be found at section 6.

3.5.12 If I have already passed the f&p test for my current job and want to change jobs and work for a different TCSP, do I have to re-apply for the test?

No. As long as your circumstances haven’t changed to the extent that you would no longer meet the criteria for the f&p test. You should inform your new employer that you have already passed the test and provide them with the MLR Registration number of the business for which you were given f&p status.

3.5.13 How do I confirm the f&p status of a new employee claiming to have passed the f&p test for a previous employer?

You can write to HMRC Anti Money Laundering Supervision at the address given earlier in this section, giving details of the individual and the MLR Registration number of the business for which they were given f&p status. HMRC Anti Money Laundering Supervision will write back and confirm if the individual is on our f&p list.

3.5.14 I have f&p status from another supervisory authority. Can I be credited for this?

No.

3.5.15 Will my f&p status be monitored by HMRC to make sure my circumstances don’t change?

Yes. We will monitor your f&p status to ensure that you continue to meet the criteria set out earlier in this section.

4.Reporting Changes

4.1 What if any of my business details change after I have registered?

You need to inform us if any of your registration details change or are incorrect within 30 days of the change or of discovering the inaccuracy.

4.2 How do I tell you about changes?

You can either complete form MLR RCT1 (Reporting Changes) or you can write a letter giving your MLR Registration number and details of the changes to HMRC Anti Money Laundering Supervision in Southend. A copy of the form can be downloaded from the HMRC internet site.

4.3 What if I’m unable to give you the full details of the changes within 30 days?

You need to contact HMRC Anti Money Laundering Supervision in Southend for a specific agreement from us to a longer period of time. You can contact them by e-mail at mlrregistrationenquiries@hmrc.gsi.gov.uk or phone on 01702 366312.

4.4 What changes do I need to tell you about?

The types of changes that you need to tell us about are:

  • changes of address, trading name, phone number
  • change of legal entity
  • any new/additional premises
  • any premises that you have stopped using for your business
  • change in Nominated Officer
  • change of franchisee or agency status
  • any criminal convictions for money laundering within your business
  • changes of personnel within your business with f&p status
  • new personnel requiring f&p status
  • changes affecting an individual’s f&p status to the extent that they would no longer meet the f&p criteria as described in this notice
  • change of partners
  • notification that you wish to cancel your registration because you no longer carry on relevant business.

4.5 What happens if I tell you about changes after 30 days?

We may impose penalties for failing to notify changes within 30 days of the change occurring, unless you have specific agreement from HMRC Anti Money Laundering Supervision in Southend to a longer period.

4.6 How much will a penalty be?

The amount will depend on your individual case. We will take a number of things into account when deciding this, for example;

  • your reasons for not telling us of changes within the 30 days
  • the nature of the changes
  • the length of time over the 30 days it took for you to inform us of the changes.

These are only examples and we may take other things into consideration.

5.Cancellation of a registration

5.1 How do I cancel my registration if I stop trading?

You must inform HMRC Anti Money Laundering Supervision in writing that you wish to be removed from the register and the date from which you wish your registration to be cancelled. This will be the date from which you will no longer carry on relevant business.

5.2 Can you cancel my registration?

Yes. We will cancel a registration if we are satisfied that any person subject to the f &p test is not in fact fit and proper:

We may cancel a registration if we are satisfied that:

  • information provided to us in the registration process is false or misleading, or
  • circumstances relating to an individual/s fit and proper status have changed and the individual/s is/are no longer considered to be fit and proper.

In the event that we decide to cancel a registration we will give notice in writing of the following matters:

  • our decision to cancel your registration
  • the date from which your registration is cancelled
  • the reasons for our decision, and
  • your right to request a review or appeal.

5.3 If my registration is cancelled part way through a year, will I get a refund of some of the fee(s) I paid?

No.

6.Reviews and Appeals

6.1 What can I do if I disagree with any decision you make in relation to my business:

Where we decide to:

  • impose a penalty, or
  • refuse to register an applicant, or
  • cancel the registration of a registered person

we will inform you immediately in writing of that decision and offer you a review.

If you disagree with our decision you may accept our offer of a review or may appeal directly to a Tribunal within 30 days of our decision letter.

You can get further information about this process by phoning the VAT & Excise helpline on 0300 200 3700, or you can view guidance ‘’What to do if you don’t agree with an HMRC decision – Indirect Tax’’ at the following link:

http://www.hmrc.gov.uk/dealingwith/appeals/indirecttax.htm

6.2 Can I continue trading during a review of your decision not to register me or to cancel my registration?

No. Once your application to register has been refused, or if we have cancelled your registration you must not carry on that business.

7.Where can I find out more information?

If after reading this notice you have any queries, or would like further advice, you can contact us by;

phone – 0300 200 3700

email – mlrcit@hmrc.gsi.gov.uk

post – HMRC Anti Money Laundering Supervision, Alexander House, 21 Victoria Avenue, Southend on Sea, SS99 1AG.

If they are unable to answer your query directly, they will be able to pass your query on to the relevant section.

8.Appendix 1

List of Supervisory Authorities including Professional Bodies named in the Money Laundering Regulations 2007:

The supervisory authorities are:

  • the Financial Conduct Authority (FCA)
  • the Office of Fair Trading (OFT)
  • the Commissioners of Her Majesty’s Revenue & Customs (HMRC)
  • the Gambling Commission of Great Britain
  • the Department of Enterprise, Trade and Investment in Northern Ireland (DETI), and
  • the Department for Business, Enterprise and Regulatory Reform (BERR).

The professional bodies are:

  • Association of Chartered Certified Accountants
  • General Council of the Bar
  • General Council of the Bar of Northern Ireland
  • Council for Licensed Conveyors
  • Faculty of Advocates
  • Institute of Chartered Accountants in England and Wales
  • Institute of Chartered Accountants in Ireland
  • Institute of Chartered Accountants of Scotland
  • Law Society
  • Law Society of Scotland
  • Law Society of Northern Ireland
  • Association of Accounting Technicians
  • Association of International Accountants
  • Association of Taxation Technicians
  • Chartered Institute of Management Accountants
  • Chartered Institute of Public Finance and Accountancy
  • Chartered Institute of Taxation
  • Faculty Office of the Archbishop of Canterbury
  • Insolvency Practitioners Association
  • International Association of Bookkeepers
  • Institute of Financial Accountants
  • Institute of Certified Bookkeepers.
  • International Association of Book-keepers

9.Glossary of terms

Term


Description


AML


Anti Money Laundering


BERR


Business, Enterprise and Regulatory Reform


CTF


Counter Terrorist Financing


DETI


Department of Enterprise, Trade and Investment in Northern Ireland


f&p


Fit and Proper


FATF


Financial Action Task Force


FCA


Financial Conduct Authority


HMRC


Her Majesty’s Revenue and Customs


MLRs


Collective reference to all Money Laundering Regulations including previous MLRs


MLRs 2007


Money Laundering Regulations 2007


NCA


National Crime Agency


NO


Nominated Officer


OFT


Office of Fair Trading


PoCA


Proceeds of Crime Act 2002


Relevant Business


For the purpose of this notice means TCSP Business


TA


Terrorism Act


TCSP


Trust or Company Service Provider


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$START-DATA$ title=Registration Guide for Trust or Company Service Providers^ summary=This guidance is 'relevant guidance' which is approved by the Treasury, for the purposes of the Money Laundering Regulations 2007 (MLR 2007). The extent to which a business can demonstrate that this guidance has been followed will be taken into account by HMRC and a court when they decide whether or not there has been a failure to comply with the MLR 2007.^ doctype=PublicNotice^ date=19-Dec-2013^ author=MG6030886^ $END-DATA$
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