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HMRC internal manual

Money Laundering Regulations: Compliance

Appendix 6 Agents and Principals: Putting Agent/Principal registrations right

It is important that registrations are put on to a correct footing and you must be pro-active in bringing this about. In a situation where you consider that an agent is incorrectly registered and ought to be included in the registration of their principal you should get the full details of the principal.

You must then notify the Registration Team, providing the following details:

* name, address and MLR number of the principal
* name and address of the business that you are dealing with
* date when the principal/agent relationship took effect

The Registration Team will take over responsibility for ensuring that the registrations are on a correct legal basis. Registration will write to the principal advising them that they are responsible for any services carried out on their behalf by their agents. They will also calculate the fees that the principal will have to pay and will consider applications for refunds from agents that deregister.

If the Money Transmitter is no longer trading in its own right but is merely an agent of the Intermediary Payment Service Provider (IPSP) then you must invite them to deregister. An IPSP is somebody that is involved in the transfer of funds but is neither the payer’s nor the payee’s Payment Service Provider.

In a situation where you consider that the business is independent and therefore correctly registered you should check that they are registered/authorised with the Financial Services Authority (FSA see MLR3C10165). If they are not you must advise them at the end of your visit that they cannot continue to provide payment services including money transmission until they have successfully registered with the FSA. Hand them a copy of the FSA information sheet that explains the situation. Also tell the business that we will be sending information about their business to the FSA.

If you are unable to clarify the position on a visit you should check the FSA register when you are next in the office and act in line with this guidance.

In any situation where a principal or agent disputes our view it should be referred to the Policy Team using a PAR (Policy Advice Request). Where objections are made over the telephone the caller should be asked to put them in writing so that they can be considered.