A Memorandum of Understanding between HMRC and the FSA was published on the FSA website on 1 June 2012. It’s about sharing information and joint visits. This will be of particular relevance to many money services businesses whom are supervised not just under the Money Laundering Regulations by HMRC but are also the FSA by the Payment Services Regulations.
Businesses that are supervised by HMRC and the FSA will find this information useful. The memorandum documents the co-operation between the two organisations for monitoring and the execution of supervisory visits and functions.
In preparing their Memorandum of Understanding the FSA and HMRC have had regard to the Statutory Code of Practice for Regulators1 which came into force on 6 April 2008. The Code sets out general principles by which regulatory activity should be undertaken, and provides the following guidance on the arrangements for collaboration between different regulators in paragraph 6.5 as follows:
“Where two or more inspectors, whether from the same or different regulators, undertake planned inspections of the same regulated entity, regulators should have arrangements for collaboration to minimise burdens on the regulated entity, for example, through joint or co-ordinated inspections and data sharing”.
Relevant businesses will have no increase in their burden for supervision, but enjoy a far more joined up approach from the supervisory authorities helping to ease the process.
The Memorandum details co-operation concerning;
- The disclosure of confidential information
- Single points of contact
- Joint visits
The full document can be found by clicking on the following link;