ECSH41035 - Operational guidance: All BOOMs changed after registration has been approved
Introduction
There are occasions where all of the beneficial owners, officers, and managers (BOOMs) of a business will change. This can result in instances where a business remains on HMRC’s register but no BOOM in the business has passed the approvals check or fit and proper (F&P) test.
Payment of fees
The business's newly added BOOMs must pay the appropriate fees to undergo the approvals test or the F&P test depending on the relevant activity provided by the business.
Notifying HMRC of a change
Bussinesses must notify HMRC of changes to BOOMs within 30 days. Where the change relates to a nominated officer or compliance officer, notification must be made within 14 days. Failure to notify HMRC within the required timeframe may result in a type 3 penalty. Further guidance on type 3 penalties is available in ECSH82800. Further information on the roles of nominated officers or compliance officers is available at AMLG11000.
The fit and proper test
The business and its BOOMs must not undertake activities in a fit and proper sector until they have applied for and passed the fit and proper test. This includes if the business is already trading in an approvals sector and decides to offer money service business (MSB) and trust or company service provider (TCSP) activity.
When a change of BOOM is identified, and the business is an MSB or TCSP, you should consider any amendments to the registration information and whether the changes introduce new geographic exposure, higher-risk products or services, new delivery channels, complex ownership structures, or other factors that may materially alter the money laundering, terrorist financing and proliferation financing (MLTFPF) risk presented by the business. Where the changes result in increased or unmanaged MLTFPF risks, consider whether additional information or documentation is required to understand and assess those risks. Where the business has failed to mitigate identified risks or has breached regulatory requirements, consider whether a sanction is appropriate, this could include suspension or cancellation of the registration. Further guidance on determining an appropriate sanction is available in ECSH81075.