What are Accountancy and Tax Services for AML Purposes?

The following definitions are taken from HMRC document MLR9 for registration guidance.

Accountancy services include the recording, review, analysis, calculation or reporting of financial information and covers professional bookkeeping services, preparing or signing accounts or certificates of financial information concerning a person’s or organisation’s financial affairs, and advising on tax.

Tax advice is widely interpreted and includes tax compliance services such as assisting in the completion and submission of tax or duty returns. Businesses assisting in the completion and submission of tax returns in relation to any tax will fall within the scope of the Regulations. Businesses providing advice relating to the liability of a particular commodity to a tax or duty or the amount of tax or duty due will also fall within the scope.

These activities are clearly defined within the interpretation of the legislation and the sector specific guidance notes. Therefore all bookkeepers, payroll bureaus, customs agents, auditors, insolvency practitioners, accountancy firms and tax advisors of all sizes are within the regulated sector.

Business owners may want to evade tax; they may possibly use the services of money services businesses to achieve this aim, for example cashing a businesses cheque rather than banking it through the business bank account. Many businesses may be used to launder criminal proceeds through intermingling with legitimate funds or some businesses may have no legitimate business at all.