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HMRC internal manual

Money Laundering Regulations: Registration

Refusing an Application for Registration: Change to Fit and Proper Status

We may consider cancelling or suspending a registration if the circumstances relating to the:

  • applicant
  • person who directs the business
  • officer or manager of the business
  • beneficial owner; or
  • nominated officer’s

fit and proper status have changed and they no longer meet the requirements of the fit and proper tests.

This also applies to agents of MSBs and their beneficial owners, officers and senior managers.

We will write to the business notifying them that the individual’s fit and proper status has changed. If the person who fails the test is a nominated officer,the business can replace the individual with someone who already has fit and proper status and move the individual to a position within the business where they are no longer responsible persons. Details of individuals removed or replaced must be sent to us within 14 days.

The business can also choose someone else to apply for the fit and proper test.

If the business decides to do nothing we must cancel their registration.

For a sole proprietor, the consequences of a change to the fit and proper status are slightly different. If the sole proprietor is no longer considered fit and proper, we will not register the business and the businesss cannot continue to trade.

The sole proprietor has the right to appeal against our decision.