Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Money Laundering Regulations: Registration

From
HM Revenue & Customs
Updated
, see all updates

Fit and Proper Test: What is tested?

We must be satisfied that the persons listed in MLR2R5150 have met the requirements set out in the Regulations. The test involves checking internal and external information sources, at the time of registration, to establish that the person is fit and proper under the MLR 2007. If a person has been convicted of any of the offences listed under (a) below, or meets the criteria in (b) to (h) below, he/she is not a fit and proper person under the MLR 2007 and the application must be refused:

If a person:

  1. has been convicted of:
* an offence under the Terrorism Act 2000;
* under paragraph 7(2) or (3) of schedule 3 to the Anti-Terrorism Crime and Security Act 2001 (offences);
* an offence under the Terrorism Act 2006;
* an offence under Part 7 (money laundering) of, or listed in Schedule 2 (lifestyle offences: England and Wales), 4 (lifestyle offences: Scotland) or 5 (lifestyle offences: Northern Ireland) to, the Proceeds of Crime Act 2002;
* an offence under the Fraud Act 2006, or in Scotland, the common law offence of fraud ;
* under Section 72(1), (3) or (8) of the Value Added Tax Act 1994 (offences); or
* the common law offence of cheating the public revenue
  1. has been adjudged bankrupt, or sequestration of his estate has been awarded and (in either case) has not been discharged;
  2. is subject to a disqualification order under the Company Directors Disqualification Act 1986(a);
  3. is or has been subject to a confiscation order under the Proceeds of Crime Act 2002;
  4. has consistently failed to comply with the requirements of these Money Laundering Regulations, the Money Laundering Regulations 2003 or the Money Laundering Regulations 2001;
  5. has consistently failed to comply with the requirements of Regulation 2006/1781/EC of the European Parliament and of the Council of 15th November 2006 on information on the payer accompanying the transfer of funds;
  6. has effectively directed a business which falls within e) or f); or
  7. is otherwise not a fit and proper person with regard to the risk of money laundering or terrorist financing

A conviction for any of the offences listed above is to be disregarded if it is spent under the Rehabilitation of Offenders Act 1974.