Tag: supervisor registration

  • HMRC to contact businesses registered under the Money Laundering Regulations

    HM Revenue & Customs (HMRC) Anti-Money Laundering Compliance Officers will shortly begin a programme of telephoning businesses registered with, and supervised by HMRC under the Money Laundering Regulations (MLR).

    These calls will be in addition to and will complement ongoing HMRC compliance activity. HMRC will be contacting businesses to make sure that up to date information is held about their activities. The calls will also further improve HMRC understanding of customers and to find out whether they need any additional help.

    HMRC can ask registered businesses for this information under Regulation 37 of the MLR 2007 and this has proved to be a very cost effective way for both customers and HMRC supervisors to conduct its compliance activity.

    During the calls the HMRC officers will confirm their identity and ask businesses for their security information. They will ask for details of business activities, customers and also answer any questions. This will help HMRC decide whether a visit is needed and give businesses the opportunity to clarify any issues they may have.

    The Revenue carrying out these checks by phone as they are quicker and less invasive than personal visits and if done correctly, HMRC should be able to distinguish based on the evidence gained form the phone call, between firms who understand their obligations under the Money Laundering Regulations and those who do not.

    A minority of supervised firms will be not be up to standard on their compliance to MLR obligations, whereby follow-up action by the way of a personal visit may be appropriate.

  • 01.09.11 Money Laundering Regulations cease to apply to stocktakers from 1 October 2011

    As part of its review of the Money Laundering Regulations and in order to ensure its effective and proportionate implementation by businesses in the UK, the Treasury has reviewed the risk of money laundering and terrorist finance with HMRC and the Institute of Licensed Trade Stock Auditors.

    As a result the Treasury has announced that stocktakers who do not carry out bookkeeping or other accountancy services will be exempt from the Money Laundering Regulations (MLR) 2007 from Saturday 1 October 2011.

    This means that they will no longer need to register with HMRC.

    This decision also supports the Government’s policy of reducing regulatory burdens on businesses.

    HMRC continue to encourage stocktakers to be diligent and report suspicious activity to the Serious Organised Crime Agency (SOCA). More information can be found at www.soca.gov.uk.

    Stocktakers who offer bookkeeping or other accountancy services will stay on HMRC’s register.

    From Monday 3 October 2011 HMRC will be writing to the stocktaking businesses already registered with them to give the opportunity to de-register for MLR.

    If you do not receive a letter from HMRC but wish to deregister, you should write to the registration team to let them know. Your letter should include details of your registration number and the reason you wish to deregister.

    The address for applications to deregister is:

    MLR Registration Team
    7th Floor Central
    Alexander House
    Southend on Sea
    Essex
    SS99 1AG

  • 20.07.10 HMRC issue new Anti money laundering guidance

    A new set of anti money laundering guides have been published on the HMRC internet site to replace Public Notice MLR8: Preventing money laundering and terrorist financing. The new guides are sector specific and provide detailed guidance in relation to the legislation, risks, record keeping and reporting requirements relevant to each business sector.

    The new guides will be available on-line only. This follows on from HMRC’s announcement on 12 April 2010 that they would stop sending printed copies of Public Notice MLR8 to businesses we supervise and publish MLR8 on the internet only. All relevant businesses should now refer to the internet when they need to check anti money laundering guidance. Printed copies of the current Public Notice MLR8 Preventing money laundering and terrorist financing dated August 2008 have now been withdrawn.

    The new anti money laundering guides are as follows:

    • Anti money laundering guidance for Money Service Businesses
    • Anti money laundering guidance for High Value Dealers
    • Anti money laundering guidance for Trust or Company Service Providers

    The guidance should make it easier for businesses to understand what is required of them under the Money Laundering Regulations and other legislation.

    Money Service Businesses (MSBs) should note that the Counter-Terrorism Act guidance has been incorporated into the ‘Anti money laundering guidance for Money Service Businesses’ this is available at Appendix 7 of the guidance. This will assist them in complying with the terms of a direction which is a legal requirement.

    MSBs should also be aware that guidance for E-money issuers will be incorporated and published in the new guidance shortly.

    High Value Dealers should note that guidance on proliferation financing risks will be incorporated and published in the anti money laundering guidance for High Value Dealers shortly.

    Accountancy Service Providers (ASPs) should continue to refer to the Consultative Committee of Accountancy Bodies (CCAB) guidance. HMRC are considering whether they can provide specific sectorial advice for Accountancy Service Providers on their Money Laundering Regulations website.

    This would be a welcome move. Most professional bodies have already written simpler guidance than the CCAB, for the members they supervise and many will be aiming for HM Treasury approval for them. It would not seem wise to leave those in most need of simplified sector guidance with only the complex CCAB guidance to reply upon.

  • 17.07.10 HMRC Publish Supervisory Visits Statistics

    In mid June HMRC a paper, which went to some length to describe the activity of the HMRC supervisory team and publish various statistics.

    HMRC now state that between the four sectors they have responsibility for supervision they now have over 18,000 registered firms, of which just over 14,000 are accountancy service providers (ASP’s) or trust and company service providers (TCSP’s).

    HMRC has not yet, in any force, started compliance visits to either TCSP’s or ASP’s, so therefore there compliance visits have been focused upon the remaining 6,000 money service businesses and high value dealers.

    In just the eight month period between September 2009 and April 2010 HMRC compliance officers carried out 908 visits to businesses, this is a tremendous figure, with almost 15% of all firms having a visit in that period. This rate of supervision has to be commended; however, unless the rate must fall considering the sheer volume of ASP’s that must come under the supervision of HMRC.

    The other interesting statistic to come from these visits was that 193 warning letters were issued, which is just over 21% of the firms visited. If you look at it from the opposite point of view, almost 80% of businesses visited had made good attempts at coping with aml compliance. That has to be good news.

  • 16.07.10 HMRC Publish their paper ‘What are your fees used for?’

    In mid June HMRC published the above paper, which went to some length to describe the activity of the HMRC supervisory team and publish various statistics. This contains some very interesting statistics and some serious areas for concern, especially in the accountancy service providers sector.

    HMRC now state that between the four sectors they have responsibility for supervision they now have over 18,000 registered firms, of which just over 12,000 are accountancy service providers (ASP’s).
    HMRC in 2009, data mined tax return information and found that there are over 92,000 ASP’s, ranging from the small bookkeeper or payroll bureau to the major firm of Chartered Accountants.

    When you actually work out who, from this total figure, is actually supervised by one of the other supervisory bodies, you find a massive short fall in registered firms.  For example, the ICAEW has around 16,500 firms it supervises, this is the largest of the accountancy bodies; the AAT for example has 3,500 generally smaller firms under its wing. In total you find that between the professional body supervisors they account for less than 38,000 of the total in the sector.

    When you add in the 12,000 HMRC firms you find you have a short fall over around 42,000 firms, for whom, after one and a half years of committing a criminal offence by operating unregistered for AML supervision still carry on regardless.

    With HMRC setting the starting penalty for non-registration at £5,000, you would think it would act as a deterrent. HMRC have been working in conjunction with the other supervisor bodies to work out who of the 92,000 is not currently registered. With HMRC’s policy of ‘policing the perimeter’, I believe that a lot of penalty notices will be hitting many a firms door mat by the end of 2010.

  • 16.04.10 Decision on appeal against registration under the Money Laundering Regulations 2003

    Decision on appeal against registration under the Money Laundering Regulations 2003

    A First-tier Tribunal (Tax Chamber) decision regarding registration of businesses under the Money Laundering regulations 2003 has now been published.

    The Appellant had claimed that it was not liable to register with HMRC under the Money Laundering Regulations 2003 because it was not carrying out any business as a money transmitter in the UK and any money transfer services in the UK were operated by its UK agents. The Tribunal, however, has dismissed this appeal and ruled that the appellant did carry on a money service business in the UK and carried that business on at each branch of its agents or sub-agents.

    The appellant is therefore required to register with HMRC and pay a fee to HMRC for all premises where they had agents carrying on business on their behalf.

    This confirms the present position concerning registration.

  • 31.03.10 HMRC Announce Penalties for non-registration

    HMRC Announces important information for Money Service Businesses, High Value Dealers, Trust or Company Service Providers and Accountancy Service Providers who have failed to apply for Money Laundering Regulations Registration.

    HMRC announce that a new late registration penalties policy has been introduced for Money Service Businesses, (MSBs) High Value Dealers, (HVDs) Trust or Company Service Providers, (TCSPs) and Accountancy Service Providers (ASPs).

    Should businesses fail to register with HMRC they will be liable to a fixed penalty and any unpaid fees. These penalties only apply to businesses that must be registered with HMRC.

    The new late registration penalty will be based on fixed penalty and any unpaid fees. This fixed penalty had been set at a £5,000. HMRC may issue a reduced penalty to businesses who notify them that they have been operating without being registered with us. This partial voluntary disclosure may lead to reductions in the penalty up to 70%.

    Additional information for Trust of Company Service Providers and Accountancy Service Providers

    From 01 April 2010 Trust or Company Service Providers and Accountancy Service Providers who have not registered with us will be liable to a penalty or prosecution.

    If you send HMRC your completed application form and appropriate fees without further delay you may be given a reduced penalty. Under the Money Laundering Regulations Trust and Company Service Providers also have to apply for a ‘fit and proper’ test as part of the registration process.

    If you are a Trust or Company Service Provider which should be registered with HMRC but cannot submit all completed fit and proper forms, then you should at least send us application form MLR 100 immediately.

    Send the completed F&P forms with the fee as soon as possible thereafter because, without them, your application is not complete. Forms and fees should be sent, along with a brief note explaining why your application is late and/or incomplete, to:

    Money Laundering Regulations Registration Team
    HM Revenue and Customs
    7th Floor, Alexander House
    21 Victoria Avenue
    Southend-on-Sea
    SS99 1AG

  • 19.01.10 OFT warns of deadline for anti-money laundering registration

    Estate agents and certain consumer credit lenders must register under anti-money laundering regulations before 31 January 2010 to avoid breaking the law, the OFT warned today.

    Carrying on business having failed to do so could result in the imposition of a fine by the OFT, a prison sentence, or both.

    Money laundering controls help prevent legitimate businesses being used to launder money, which is where cash or assets obtained by criminal activities are exchanged for clean money or assets with no obvious link to their criminal origins.

    John Parker, OFT Director of Anti Money Laundering, said:

    ‘The consequences for estate agents and consumer credit financial institutions of not registering under anti-money laundering regulations are severe. It is important that businesses register immediately to avoid breaking the law.

    Visit the BTC website for compliance help and support for firms in the regulated sector

  • 10.11.09 HMRC Publish Money Laundering Regulations Memorandum Trading Account

    HMRC Publish Money Laundering Regulations Memorandum Trading Account

    The Money Laundering Regulations supervisory regime is run on a cost recovery basis and the fees paid by customers cover the expense of running the operation. HMRC costs include registering new businesses, contacting and visiting businesses, running an effective risk system, maintaining the register and producing guidance and information for customers.

    This account summarises the resources that have been applied and generated in providing services and managing the HM Revenue & Customs (HMRC) Money Laundering Regulations supervisory regime for the year ending 31 March 2009. The figures are consistent with the HMRC 2008-09 Resource Accounts prepared in accordance with UK GAAP.

     

    Costs

    Income
    Staff costs £3,270,383
    Non cash costs :
    Depreciation
    Costs of capital    		 £162,789
    £51,070
    Travel and subsistence £136,776
    Other admin costs £6,031
    Income (£4,436,049)
    Overheads £2,305,564
    Totals £5,932,613 (£4,436,049)
    Net operating cost (£1,496,564)

    Notes: The £1,496,564 deficit for the year results from a large fee being challenged. HMRC have not included the amount under challenge within the above figures to maintain consistency with audited HMRC figures. However, HMRC have issued a statement of demand for the amount and are pursuing payment during 2009-10.

  • 05.11.09 HMRC MLR Registration Fee level remains unchanged for 2010-2011

    The annual fee for businesses registered under the Money Laundering Regulations 2007 will remain at £120 per premise for the year 2010 – 2011. HMRC are pleased to be able to provide early confirmation of next year’s fee level as they are aware that many larger businesses appreciate as much notice as possible to help in their financial planning.

    Introduced in 2002, the fee was initially set at £100, and was subsequently reduced to £60 from June 2003. There were no changes until 1 June 2007, when the fee was increased to £95; this level was maintained in 2008, and increased to £120 in 2009.