Firms authorised under FSMA who we supervise under the Money Laundering Regulations are required to notify us if they carry out certain activities that come under these Regulations but are not part of their FSMA permissions.
The Money Laundering Regulations 2017 came into force on 26 June 2017 and updates the UK’s anti-money laundering (AML) regime. Regulation 23 requires authorised persons to inform us if they are undertaking Money Service Business (MSB) or Trust or Company Service (TCSP) activities.
Who needs to report
The reporting requirement only applies to firms who are authorised under FSMA and supervised by us under the Money Laundering Regulations. So, it does not apply to:
- E-Money Institutions
- Certain firms authorised by us as a consumer credit firm who carry out MSB activity (outlined below). This only apples to firms whose business model falls within the definition of an ‘exempt money service business’ in Regulation 7(5) of the MLRs.
- Authorised Professional Firms. Such firms are supervised for AML compliance by their relevant professional firm.
There are three situations which an authorised firm may need to notify us about:
- If you conducted MSB or TCSP activity before 26 June 2017, you must notify us by 26 July 2017.
- If you begin to conduct MSB or TCSP activity after 26 June 2017, you must notify us within 28 days of doing so.
- If you cease to provide either of these services, you must also notify us within 28 days.
How to report
Firms can meet this requirement by emailing their notification:
- If you are notifying us about MSB activity- [email protected]
- If you are notifying us about TCSP activity - tcspr[email protected]
You should include your firm name and firm reference number in the subject line of your email.
What are MSB and TCSP activities?
MSB activities are money transmission, currency exchange and cheque cashing.
Currency exchange could involve running a bureau de change to buy or sell back their holiday money through to the sale or purchase of wholesale currency with businesses. Further guidance to help you determine whether you conduct these activities is provided by HMRC and for Money Transmission see our Handbook on the perimeter of the Payment Services Regulations.
TCSP activities include:
- trust and /or company formation agents
- providing registered offices, business addresses, accommodation or correspondence addresses, or mail forwarding services to businesses (other than those run by sole proprietors)
- any individual or company providing nominee director services, nominee company secretary services or nominee shareholder services - or other similar services; arranging for another person to act as a director, company secretary, partner or professional trustee; offering professional trustee services (unless they relate to certain low-risk trusts) and providing their services as nominee shareholder (unless they’re acting for a company whose securities are listed on a regulated market)
- any company providing their services as a company director, company secretary, or partner to another company (unless the other company is a member of the same group)
- any individual providing their services as a nominee director or nominee company secretary; company director, company secretary or partner to certain high-risk businesses
HMRC provides detailed guidance which you can use to help you decide whether you need to report.