|HMRC Reference:Notice MLR9c (December 2013)||View Change History|
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.
This notice will help you find out:
The glossary of terms at the end of this notice will help you understand the technical terms and abbreviations used.
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
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:
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.
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: firstname.lastname@example.org
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: email@example.com
(Note: although we will accept change of circumstances by e-mail we do not currently accept registration applications this way)
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.
The main pieces of UK legislation for Anti Money Laundering and Counter Terrorist Financing are:
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.
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’:
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
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:
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: firstname.lastname@example.org.
Or write to us at the following address:
HMRC Anti Money Laundering Supervision Alexander House Southend on Sea SS99 1AG
A limited company, a partnership and a trustee are legal persons. A sole proprietor and a trust are not legal persons.
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.
‘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.
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.
(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.
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:
No. You will only have to register your PSC unless you also invoice for relevant business as an individual.
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.
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.
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.
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.
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.
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
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/
(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.
(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.
(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.
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.
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.
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.
Yes. If you undertake these activities on behalf of a company or partnership.
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.
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.
No - You are not within the scope of the regulations if you are providing a physical space to your customers
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
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”.
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.
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.
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.
Yes. More information about the f&p test can be found later on in this section.
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:
You can find out about making payments by BACS or CHAPS by contacting HMRC Anti Money Laundering Supervision in Southend on 01702 366312.
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.
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.
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.
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.
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
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.
The amount will depend on your individual case. We will take a number of things into consideration when deciding this, for example;
These are only examples and we may take other things into consideration.
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.
For the purpose of calculating fees, premises means any place from which you carry on business as a TCSP. Examples include;
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.
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.
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.
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.
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.
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.
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.
The following individuals within the business will need to submit an application for the test:
Yes. If someone from the above list joins a business after it becomes registered they must apply for the fit and proper test.
In the case of a body corporate a beneficial owner is any individual who:
In the case of a partnership, beneficial owner means any individual who:
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.
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.
No. The fee pays for the f&p test to be carried out.
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.
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.
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
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.
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.
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.
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.
Yes. We will monitor your f&p status to ensure that you continue to meet the criteria set out earlier in this section.
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.
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.
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 email@example.com or phone on 01702 366312.
The types of changes that you need to tell us about are:
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.
The amount will depend on your individual case. We will take a number of things into account when deciding this, for example;
These are only examples and we may take other things into consideration.
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.
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:
In the event that we decide to cancel a registration we will give notice in writing of the following matters:
Where we decide to:
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:
No. Once your application to register has been refused, or if we have cancelled your registration you must not carry on that business.
If after reading this notice you have any queries, or would like further advice, you can contact us by;
phone – 0300 200 3700
email – firstname.lastname@example.org
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.
List of Supervisory Authorities including Professional Bodies named in the Money Laundering Regulations 2007:
The supervisory authorities are:
The professional bodies are:
Anti Money Laundering
Business, Enterprise and Regulatory Reform
Counter Terrorist Financing
Department of Enterprise, Trade and Investment in Northern Ireland
Fit and Proper
Financial Action Task Force
Financial Conduct Authority
Her Majesty’s Revenue and Customs
Collective reference to all Money Laundering Regulations including previous MLRs
Money Laundering Regulations 2007
National Crime Agency
Office of Fair Trading
Proceeds of Crime Act 2002
For the purpose of this notice means TCSP Business
Trust or Company Service Provider
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