Money Laundering Regulations 2007

From 15 December 2007 the Money Laundering Regulations 2007 required certain businesses to have systems in place to prevent money laundering and terrorist financing .

Businesses which must comply with the regulations are:

Money Service Businesses (MSBs)

MSBs are bureaux de change, money transmitters and third party cheque cashers

 

High Value Dealers (HVDs)

Any business prepared to accept high value cash only payments (HVPs). A HVP is a payment of at least €15,000 (approx. £ 11,000) in cash for goods, whether it be in a single transaction or in several installments.

 

Trust or Company Service Providers (TCSPs)

Any firm or sole practitioner who by way of business provides any of the following services to third parties:

forming companies or other legal persons; acting or arranging for another person to act; providing a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal person or arrangement; trustee; nominee share holder etc


Accountancy Service Provider (ASP)

Any business which provides the following service:

accountants; auditors; tax advisers; bookkeepers; payroll agents; tax consultants; customs practitioners; interim managers undertaking any of the activities of the businesses listed above.

 

In order to continue trading legally, all the above businesses must comply with the regulations and must either be registered with HMRC [a registration fee, currently £95 pa, applies] or hold a Certificate Of Compliance obtained from a relevant professional body. See HMRC web-site. This comes into effect on 1st January 2009. Failure to comply with the Money Laundering Regulations 2007 after that date will impose appropriate civil penalties on businesses, by HMRC, for illegal trading.

BKC urges all clients who use book-keeping services from a third party to ensure that the individual or firm are trading legally. Check their legal status by requesting sight of a current Certificate Of Compliance [renewed annually]. Failure on behalf of the self-employed individual to produce a Certificate Of Compliance upon request may mean your books and records are being produced illegally.