Understanding Money Laundering Regulations

The Money Laundering Regulations (MLR) are in place to keep the UK financial system safe by putting controls on businesses and making sure they are not used for illegal activities like money laundering by criminals or terrorists.

While many businesses are monitored by the Financial Conduct Authority (FCA) or belong to professional bodies like the Law Society, businesses that fall under HMRC's supervision need to be aware of the requirement to register with HMRC — and the consequences of not doing so.

HMRC is responsible for overseeing a number of business sectors, including:

• Money Service Businesses that aren’t supervised by the FCA
• High Value Dealers dealing with cash payments of €10,000 or more for goods, either in one transaction or linked transactions
• Trust or Company Service Providers not overseen by the FCA or a professional body
• Accountancy Service Providers not supervised by a professional body
• Estate Agency Businesses
• Bill Payment Service Providers not supervised by the FCA
• Telecommunications, Digital, and IT Payment Service Providers not supervised by the FCA
• Art Market Participants buying or selling artwork where the transaction value (or linked transactions) is €10,000 or more
• Letting Agency Businesses renting properties or land worth €10,000 or more a month

If your business falls into one of these categories, it’s important to stay on top of your registration requirements with HMRC to avoid any penalties.

If you need tax advice, give our expert and friendly team a call on 01380 723692 or email us here.