Penalties guidance: identifying registration breaches: Regulations 56
- Regulations 56
Breaches of Regulations 56- carrying out regulated activity as a MSB, HVD, TCSP, ASP, EAB, BPSP or TDITPSP without being registered with us (when HMRC is the appropriate supervisor). This means trading unsupervised.
Trading unsupervised can be a very serious breach because it can indicate involvement in money laundering or an attempt to avoid applying anti-money laundering controls. This in turn may indicate that a business is being used as a vehicle for money laundering, which the business may or may not be aware of.
A breach of this Regulation will normally be identified by either:
- disclosure, (by the business telling us) or
- will be discovered by us during an intervention (desk based or Compliance Visit). A visit may have been set up as a direct result of third party information we have received.