Published on 7 Dec 2007
Do you introduce directors, company secretaries or partners as perms or interims?
If so, the Money Laundering Regulations 2007, may apply to you, though this is currently subject to discussions between HMRC and the REC.
Trust or company service providers (TCSPs) are defined in the Regulations as those who by way of business provide a service of acting or arranging for another person to act as a director or secretary of a company, or partner of a partnership. HMRC take the view that "arranging" would include agencies. However, the REC believes that agencies take the instructions of arrangers (their clients) and do not themselves arrange. The REC believe HMRC's interpretation will cause disproportionate cost with negligible benefits to the overall money laundering regime.
The REC has been involved in consultations with HMRC during the year and has recently written to them setting out in detail why they believe agencies should not fall into the scope of the Regulations. We await a response.
The Regulations require TCSPs to register with HMRC and subsequently be subject to duties of compliance and reporting of suspicious activity.
The Regulations come into force on 15 December 2007. However, HMRC does not expect agencies to register with them until February / March 2008.
Click here for HMRC's Draft Guidance Public Notice MLR8 is at this link .
Posted by Site Administrator