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HMRC internal manual

Money Laundering Regulations: Registration

From
HM Revenue & Customs
Updated
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Accountancy Service Providers (ASPs): Community Accountants

Community accountants provide a variety of accountancy services to both individuals and businesses. The main question is whether they are provided by way of business. Some charge a small fee for their services and some make no charge at all.

See MLR2R1300 on ‘by way of business’

You will need to look at the circumstances of each case in order to make a decision, taking into account the purpose of the regulations in relation to the prevention of money laundering, and not in relation to any liability to tax.

Charging a small fee will not rule out a decision that services are not provided ‘by way of business.’ You may need to refer to the MLR Policy Team for a decision.

Where community accountancy services are provided by bodies which are registered charities, at no charge, they are outside the scope of the MLR.

Where community accountancy services are provided by bodies which are registered charities, for a small charge, but any profits could not be distributed and / or they are subsidised by grants from Local Authorities or other Government bodies, they are also outside the scope of the MLR.