ECSH64820 - Schedule 3 - Relevant Offences

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer)

Regulations 2017 (legislation.gov.uk)

Category Heading	Description
The Law	https://www.legislation.gov.uk/uksi/2017/692/schedule/3
What it means	If a responsible person is convicted of an offence which is listed in the schedule, they cannot be approved as a beneficial owner, officer, manager or sole proprietor (BOOMS), if the conviction is not ‘spent’ in line with the Rehabilitation of Offenders Act. If a responsible person is convicted of an offence which is not listed in schedule 3 (or linked legislation) it is not “relevant” to the MLRs.
Purpose	The schedule lists the acts which are relevant to Regulation 26 (Prohibition and approvals) and Regulation 58 (Fit and Proper Test) such as money laundering and terror offences, fraud and corruption, drugs, arms or people trafficking. This is to prevent criminals from holding a position of authority in a relevant business. The offences are relevant to BOOMS of: Art Market Participants; Estate Agency Businesses; High Value Dealers; Letting Agency Businesses; Money Service Businesses (and their agents); Trust or Company Service Providers.
Time Line	The “criminal test” was not included in previous MLRs.
What to establish	Checks against the Police National Computer (PNC) will list all criminal convictions. Check the conviction falls under one of the specific laws listed in schedule 3. Confirm the length of the sentence relating to the relevant criminal offence.  All sentences (including fines and community orders) carry a rehabilitation period. The length of the sentence may be impacted if the individual reoffends during this period. Sentences are reduced if the offender is under 18. A relevant conviction is “unspent” until the period covering the length of the sentence plus the length of the rehabilitation period has elapsed. A person may have multiple convictions and sentences can be consecutive (added together), concurrent (run at the same time) or unrelated (treated separately). The Rehabilitation of Offenders Act 1974 treats a rehabilitated person as if he or she had never committed the offence. Note: There are different rehabilitation periods for England and Wales, Scotland and Northern Ireland. Further guidance surrounding the rehabilitation of offenders can be found on GOV.UK - see link below. Solicitors Office have provided a breakdown of relevant offences in relation to: Sch 3, paragraph 29 - An offence under the law of any part of the United Kingdom consisting of being knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of tax Sch 3, paragraph 30 - Any offence which involves deception or dishonesty as one of its components This can be found in the Guidance section of the Knowledge Library under Policy Guidance/Money Laundering Regulations.
How to test compliance and evidence to obtain	If a relevant conviction is spent, it can’t be used to prevent the individual from being approved or passing Fit and Proper. However, there may be other factors to consider when determining an application for registration, or when reviewing an existing registration – please follow the advice under the Regulation 26, 58, 59 and 60 tabs.
Best Practice	Please follow the advice in the Regulation 26 tab for Prohibitions and approvals and Regulation 58 for F&P failures.
AMP	No additional Best Practice.
ASP	No additional Best Practice.
EAB	No additional Best Practice.
LAB	No additional Best Practice.
HVD	No additional Best Practice.
MSB	No additional Best Practice.
TCSP	No additional Best Practice.
Further Reading	The fit and proper test  Proceeds of Crime Act 2002 (legislation.gov.uk)  Regulation 26 - Prohibitions and Approvals Regulation 58 - Fit and Proper Test
FAQs	Previous Policy Advice Requests and Solicitors advice are held within the Policy pages of the Knowledge Library Is an offence listed in Schedule 3 a ‘relevant offence’ for TDITPSPs and BPSPs? At this time, these sectors are not subject to an approval check or fit and proper test. Therefore, an offence listed in Schedule 3 would not stop the approval of an application for registration.