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HMRC internal manual

Money Laundering Regulations: Compliance

Our risk based approach to supervision: HMRC supervision: Money Laundering detected by chance unrelated to the purpose of any compliance activity

An officer could by chance come across upon information unrelated to the purpose of their visit indicating possible money laundering. For example: identifying that the business was not registered for VAT but made taxable supplies over the VAT threshold. Or over hearing the business manager boasting about receiving payment in cash for accountancy work he did in the evening. If this is not related to the purpose of the visit then this information does not need to be notified to SOCA by HMRC.

The general obligations on public authorities Regulation 42 do not apply to HMRC and this makes it clear that it is only whilst carrying out our functions as supervisor that we need to notify SOCA where we have reasonable grounds for knowledge or suspicion of money laundering

Where other offences not involving MLR or POCA or Terrorism Offences are suspected officers should follow the procedure at MLR3C8595 as there are teams set up to deal with this information.

Remember that any information collected during the course of an MLR compliance visit that relates to other regimes must be obtained whilst ensuring the traders compliance with the Money Laundering Regulations.

Officers should remember that risk assessment should precede and inform all aspects of HMRCs supervision, including:

  • interventions
  • data collection and other information requirements
  • advice and support and
  • enforcement and sanctions.