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HMRC internal manual

Money Laundering Regulations: Registration

Changes in Legislation: The Changes

The MLR 2017:

  • introduced an approval process for ASPs,  EABs, and HVDs. This process applies to managers, officers, beneficial owners and sole practitioners. The business needs to ensure that no one acts in these positions without approval by HMRC.

Under the new Regulations we must refuse to register a money service business or trust or company service provider if we find that any of the individuals taking the test are not fit and proper. See MLR2R5000 

The individuals who must take the test include:

  • The applicant;
  • the people who direct the business
  • officers of the business including director and company secretary
  • senior managers
  • the beneficial owners
  • the Nominated Officer

MSB Principals must assess their agents (and the agents  beneficial owners, officers and senior managers) to ensure that they would satisfy the fit and proper test.

The fit and proper test and approvals are checks to prevent unsuitable individuals from owning or managing a business supervised by HMRC. The requirement is that:

  • responsible persons in the business have not been convicted of a relevant offence
  • and, where appropriate, are otherwise fit and proper.