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HMRC internal manual

Money Laundering Regulations: Compliance

The scope of our supervision: Identifying relevant businesses trading unsupervised when required to register with HMRC: Encouraging voluntary disclosure

It is important to remember that HMRC is but one of many supervisors under the Money Laundering Regulations and the default supervisor for MSBs, ASPs, TCSPs and EABs.

Just because a relevant business is not registered with HMRC does not mean that they are trading unsupervised.

We want to positively encourage businesses that are trading unsupervised to become compliant. This can be done through a package of measures which encourages the non-compliant who wish to change their behaviour but heavily penalises those who continue to trade unsupervised.

To encourage compliance HMRC will allow generous reductions to the starting penalty when a business makes a full unprompted disclosure that they have breached the Regulations. An unprompted disclosure means that the business must contact us before we initiate any type of enquiry or Intervention. For more information on disclosures refer to the MLR1 guidance

HMRC will reinforce this message by a combination of publicity and sanctions. Our sanctions are explained fully in MLR1 The range of publicity includes:

  • Working closely with trade and professional bodies representing the businesses we supervise.
  • Using our Internet Page to publicise updates and changes affecting the businesses we supervise.
  • email alerts to businesses on variouis issues

Working with compliant businesses to identify non-compliant competitors and encouraging those who deal with businesses who they suspect are trading unsupervised to report their suspicions using the Customs Confidential Hotline

  • Arranging seminars, forums and webinars
  • Liaising with banks and the FCA to identify businesses that are still using their bank account for MSB activity but are not longer registered with HMRC
  • Making the register available to the public through the search facility