New UK money laundering regulations due in force
The UK authorities are urging businesses to be prepared for the new money laundering regulations that come into effect on 15 December 2007.
The new rules will apply to money service businesses (MSBs), trust or company service providers (TCSPs), high value dealers (HVDs) and accountancy service providers (ASPs).
The new regulations will bring more businesses under the supervision of HM Revenue & Customs, the UK tax authority and introduce a new fit and proper test for people in positions of ownership or control in MSBs and TCSPs. It will also require businesses to implement risk-based systems and controls to help prevent money laundering and terrorist financing.
HMRC already supervises MSBs and HVDs for compliance with existing regulations. The new regulations extend this supervision to ASPs, as well as TCSPs.
ASPs, MSBs and TCSPs will all need to register with HMRC unless they are already supervised by a designated professional body. HVDs are already required to register with HMRC.
The proposed registration deadlines for businesses are 1 February 2008 for MSBs and 1 April 2008 for TCSPs. Existing HVDs will re-register with HMRC as a part of the annual process by which they renew their registration.
From 15 December 2007, any new MSB, HVD or TCSP must register with HMRC before they commence trading.
HMRC intends to open a register for ASPs on 1 April 2008, with a registration deadline of 1 July 2008. Once the ASP register is closed in October 2008, any new ASP must register with HMRC before they commence trading.
The fit and proper test is a negative-criteria check of the background of an applicant intended to disrupt criminal access to these sectors.
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