ECSH63335 - Regulation 12 - Independent legal professionals and trust or company service providers

The Law	https://www.legislation.gov.uk/uksi/2017/692/regulation/12
What it means	An explanation of the terms for "independent legal professional" and "trust or company service provider".
Purpose	A relevant person/business needs to know if it falls within the scope of the Regulations.
Time Line	These were defined in MLR 2007; Regulations 3(1)(d) & (e), (9) & (10).
What to establish	12(1) - definition of "independent legal professional" 12(2) - definition of "trust or company service provider" To establish that the TCSP falls within one of the above categories. All TCSPs should be supervised by one professional body (PB) (very limited exceptions to this). HMRC is the TCSP default supervisor if the relevant person/business is not supervised by another PB. See MLR2017 - Schedule 1 for a current list of Treasury approved PBs
How to test compliance and Evidence to obtain	Obtain a clear explanation of all activities being undertaken and different services being provided to its clients. Obtain a clear explanation of how the business actually 'onboards' its clients and see if that agrees with its Policies, Controls & Procedures (PCP). Concerning each client or group of clients find out what risks have been identified and how have they been assessed and recorded.
Best Practice	Sector specific information:
AMP	N/A
ASP	There are a number of businesses that supply services which fall within the scope of the regulations under both ASP & TCSP sectors. If a business supplies services under these two sectors it should register declaring both sectors it operates under, with its supervisor.
EAB	N/A
LAB	N/A
HVD	N/A
MSB	N/A
TCSP	Pay particular attention to complex business structures, which provides anonymity or does not appear to make any financial sense.
Further Reading	(This content has been withheld because of exemptions in the Freedom of Information Act 2000) GOV.UK Guidance - Money Laundering Regulations-Trust or Company Service Provider Registration Risk based approach (Reg 18) and establish Policies, Controls & Procedures (Reg 19): MLR3 c4000 GOV.UK guidance on Sector specific Risk Assessments National Risk Assessment Dec 2020 Risk based approach - Regulation 18 Policies, controls and procedures - Regulation 19 Customer due diligence measures - Regulation 28
FAQs	Q: The TCSP advises it does not need to be (or no longer needs to be) registered. A: Ask the business to put its case in writing, confirming that is no longer undertaking any relevant activity. Q: The TCSP advises it is already supervised for AML purposes by another PB. A: Ask for the business to advise you of its other supervisor (and reference number). You can then pass this information to the Gateway team (in the form of an Intelligence Referral) and request them to confirm that the business is supervised for the purposes of AML with the other supervisor. (Reg 52). Q:The ASP advises that it allows its clients to utilise the ASP's address as their Registered Office. Does this fall within the realms of TCSP and do they need to be registered as as TCSP? A: Per the Regulations, the provision of a Registered office is a relevant activity and therefore the ASP should register as a TCSP.