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HMRC internal manual

Money Laundering Regulations: Compliance

Appendix 7 Miscellaneous Guidance: Businesses with a Nominated Officer based outside the UK

Regulation 20(2) MLR 2007 requires businesses to appoint a nominated officer (unless the business is run by a sole proprietor) for the purpose of considering reports from within the business that a person is suspected of money laundering or terrorist financing. It is the function of the Nominated Officer to consider the reports and to comply with the provisions of Part 7 POCA 2002 and Part 3 Terrorism Act 2002.

MLR 2007 does not specify that the Nominated Officer must be based in the UK. However, we take the view that if a business raises the question of where the Nominated Officer is based we should recommend that it is in the UK. The business is conducting its business from the UK and is supervised within the UK and therefore it is far easier for the Nominated Officer to carry out his responsibilities under Regulation 20 MLR 2007 if he/she is UK based. If a business is reluctant to accept this recommendation it should be pointed out that the business must be able to demonstrate that their non UK based Nominated Officer is fully able to carry out all the responsibilities of the post and that failure to do so could result in civil penalties or prosecution.