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HMRC internal manual

Money Laundering Regulations: Registration

From
HM Revenue & Customs
Updated
, see all updates

Introduction: Background: General

These businesses must not act as an MSB, TCSP, HVD or ASP until they are registered with HMRC, unless they are already supervised by the Financial Services Authority (FSA) or a designated professional body

MSB means an undertaking which, by way of business:

  • operates a currency exchange office (Bureau de Change);
  • transmits money or any representation of money by any means (including businesses issued with a small e-money issuer exemption certificate issued by the FSA); or
  • cashes cheques which are made payable to customers (third party cheques)

Some MSBs also act as Consumer credit institutions or as Annexe 1 Financial Institutions. See MLR2R3350 and MLR2R3400 

TCSP means a firm or sole practitioner who by way of business provides any of the following services to other persons:

  • forming companies or other legal persons;
  • acting, or arranging for another person to act -

 

  • as a director or secretary of a company;
  • as a partner of a partnership; or
  • in a similar position in relation to other legal persons;

 

  • providing a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal person or arrangement;
  • acting, or arranging for another person to act, as -

 

  • a trustee of an express trust or similar legal arrangement; or
  • a nominee shareholder for another person other than a company listed on a regulated market which is subject to disclosure requirements consistent with Community legislation or equivalent international standards

HVD means a firm or sole trader who by way of business trades in goods (including an auctioneer dealing in goods):

  • when they receive, in respect of any transaction, a payment or payments in cash of at least €15,000 in total;

This applies whether the transaction is executed in a single operation or in several operations which appear to be linked.

ASP is the term we use for:

  • Auditors;
  • External accountants; and
  • Tax advisers

Auditor means any person who is a statutory auditor within the meaning of Part 42 of the Companies Act 2006 and carries out statutory audit work.

External accountant means any firm or sole practitioner who by way of business provides accountancy services to other persons.

Tax adviser means any firm or sole practitioner who by way of business provides advice about the tax affairs of other persons.

It is important to remember that it is only when these activities are provided ‘by way of business,’ that they fall within the scope of the regulations. See MLR2R1300