Policy paper

Data from Money Service Businesses

This tax information and impact note is proposing to expand its bulk data gathering powers to Money Service Businesses (MSBs).



HM Revenue and Customs (HMRC) is extending its data-gathering powers to MSBs, in order to identify businesses and individuals in the hidden economy. This will be achieved by amending Part 2 of Schedule 23 to Finance Act 2011 to include an MSB as a ‘relevant data holder’ under this legislation.

Under anti-money laundering legislation, MSBs are required under certain circumstances to conduct due diligence checks on customers. The majority are supervised for compliance with these regulations by HMRC. HMRC can request limited information from MSBs under its supervision for anti-money laundering purposes in order to check their compliance with those rules. HMRC can use any information obtained for tax compliance purposes, but can’t request the information with the original intention of checking the tax position of their customers.

Extending Schedule 23 to MSBs will allow HMRC to collect certain types of customer data, for tax compliance purposes.

Draft legislation has also been published.

Published 5 December 2016