Should you have registered with HMRC under the Money Laundering Regulations 2007

The Money Laundering Regulations 2007 came into force in December 2007.All businesses that are covered by the regulations should have already put in place suitable anti-money laundering controls. 

The Money Laundering Regulations apply to a number of different business sectors, including financial and credit businesses, accountants and estate agents.

If your business is covered by the Money Laundering Regulations you should have put in place certain controls to prevent it from being used for money laundering. These include:

• assessing the risk of your business being used by criminals to launder money
• checking the identity of your customers
• checking the identity of 'beneficial owners' of corporate bodies and partnerships
• monitoring your customers' business activities and reporting anything suspicious to the Serious Organised Crime Agency
• making sure you have the necessary management control systems in place
• keeping all documents that relate to financial transactions, the identity of your customers, risk assessment and management procedures and processes
• making sure that your employees are aware of the regulations and have had the necessary training

Every business that's covered by the regulations must be supervised by a supervisory authority. Your business may already be supervised, for example because you belong to a professional body like the Law Society. But if it's not, and your business falls into one of four business sectors, you're likely to have to register with HMRC.

HMRC supervises the following four business sectors:

• Money Service Businesses
• High Value Dealers
• Trust or Company Service Providers
• Accountancy Service Providers

If you have not yet registered, more information is available on the HMRC website (http://www.hmrc.gov.uk/mlr/getstarted/register/who.htm)

HM Revenue & Customs (HMRC) Anti-Money Laundering Compliance Officers will shortly begin a programme of telephoning businesses registered with, and supervised by HMRC under the Money Laundering Regulations (MLR) 2007.

These calls will be in addition to and will complement ongoing HMRC compliance activity. HMRC will be contacting businesses to make sure that up to date information is held about their activities. The calls will also further improve HMRC understanding of customers and to find out whether they need any additional help.

HMRC can ask registered businesses for this information under Regulation 37 of the MLR 2007 and this has proved to be a very cost effective way for both customers and HMRC supervisors to conduct its compliance activity.

During the calls the HMRC officers will confirm their identity and ask businesses for their security information. They will ask for details of business activities, customers and also answer any questions. This will help HMRC decide whether a visit is needed and give businesses the opportunity to clarify any issues they may have.

Source: HM Revenue & Customs website (www.HMRC.gov.uk)