Compliance

All members of the bca are required to comply with a Code of Conduct and Best Practice which ensures that they meet the highest quality standards and deliver a thoroughly professional service to customers at all times

Membership Compliance including Code of Conduct and Consumer Charter

New Money Laundering Regulations - Effective 15th December 2007

HMRC have engrossed the following notes for the bca. As you read through these notes you will see that there is a registration process, attached are the necessary forms. Should you require further guidance in completing the forms, please use this link

http://www.hmrc.gov.uk/mlr/mlr100.pdf

http://www.hmrc.gov.uk/mlr/regs.htm

download MLR Fit and Proper Test.pdf

What do I have to do from 15th December 2007?
In layman’s terms the law says if you provide a registered office, business address, correspondence or administrative address or other related services for a company, partnership or any other legal arrangement – this excludes sole proprietors – you are caught by the regulations. The objective of the Regulations is to detect or deter money laundering. You have to look at the money laundering risks your business is exposed to and draw up procedures to mitigate them. You have to make sure that everyone concerned in your business is aware of your procedures and is trained to know what to do to comply with the regulations, including knowing when to identify customers and to obtain information on the nature of the business they wish to transact with/ through you. You must appoint one responsible person in your business as the “nominated officer” – the person that reports suspicions to SOCA. You must then establish a system, known to your staff, enabling them to report any suspicions to that person. You must write down your risk assessment and your processes for monitoring the threat and keep it under review. HMRC notice MLR 8 – Section 6 and Appendix 3 have more information on this.

When do I have to identify customers?
There are a number of different criteria. In your business it will normally be when you begin a business relationship with a customer or when you are suspicious of money laundering or terrorist financing. You will also need to verify the identity of anyone who owns more than 25% of, or otherwise controls the customer, or anyone on whose behalf they are acting. Where you do not deal with your customer face to face there is a higher risk that the customer may not be who they claim to be. You need to take additional steps to confirm the identity of the person with whom you are dealing by for example requiring that documents produced to you are certified or ensuring that the first payment to you is carried out through an account opened in the customer’s name.

Do I need to register with HMRC?
Within the law you are known as a Trust or Company Service Provider. As such you need to lodge an application with HM Revenue and Customs before 1st April 2008. The application has two aspects. Form MLR 100 is completed by the business. Form MLR 101 called a fit and proper test must be completed by anyone in the business who is either

A beneficial owner – an individual who owns or in anyway controls more than 25% of the shares or voting rights of the business
A person who effectively directs the business – usually any person who sits on the board of directors (including non executive directors)
The nominated officer – the person responsible for reporting any suspicions to the Serious Organised Crime Agency
Is there a fee?
Yes. You must pay £120 for every premises through which you operate and £50 for every person that applies for the fit and proper test.

What is the registration process?
Complete the MLR 100 and MLR 101(s) and send them on to HMRC (address on the form) Together with your payment before 1st April 2008. Check your forms MLR 100 and MLR 101(s) carefully before sending them as any errors or omissions could result in a delay to your registration. Provided there are no problems HMRC will issue you with a certificate confirming your registration.

If you have an enquiry relating to the MLR registration process - please email

MLRRegistrationEnquiries@hmrc.gsi.gov.uk

for all other enquiries email

MLRCIT@hmrc.gsi.gov.uk

What happens once I have registered?
If there are any significant changes to your business, eg you change your name or address, or take on an additional premises, you need to write to HMRC to let them know within 30 days.

The operating fee is renewable annually. At the appropriate time HMRC will issue you with a renewal notice telling you the cost of the fee for that year. If you wish to retain your registration you need to reply enclosing your payment.

What happens if I don’t register?
You are not allowed to carry out trust or company services legally unless you register. You will be liable to penalties or prosecution if you do.

More detailed information including the application forms are available through HMRC internet site www.hmrc.gov.uk/mlr which is being updated regularly. HMRC are using the site as their main means of communication. If you need further help you can email HMRC through the “contact us” page of the website. If the query is complicated and the people answering the phones are unable to help you, they will pass on your enquiry to a specialist who will get back to you as soon as possible.”

http://www.hmrc.gov.uk/mlr/mlr100.pdf

For General Enquiries 0845 010 9000

Money Laundering Regulations glossary of terms - November 2007
Term Meaning/explanation
AML Anti Money Laundering
ASP Accountancy Service Provider
CTF Counter Terrorist Financing
F&p Fit and Proper
FSA Financial Services Authority
HMRC HM Revenue and Customs
HVD High Value Dealer
MLRs Money Laundering Regulations (collective reference to all previous Money Laundering Regulations)
MLRs 2003 Money Laundering Regulations 2003 (current until 15th December 07
MLRs 2007 Money Laundering Regulations 2007 (will cancel and replace MLRs 2003 from the 15th December 2007)
MSB Money Service Business
NO Nominated Officer
OFT Office of Fair Trading
PoCA Proceeds of Crime Act 2002
Relevant Business Relevant business is business activity to which the Money Laundering Regulations apply, and for the purposes of this notice means MSB, HVD, TCSP and ASP
SOCA Serious Organised Crime Agency
TA Terrorism Act
TCSP Trust or Company Service Provider

LONDON LOCAL AUTHORITIES ACT 2007 -

http://www.legislation.gov.uk/ukla/2007/2/pdfs/ukla_20070002_en.pdf

New provisions controlling mail forwarding businesses are contained in section 75 of the London Local Authorities Act 2007 and come into force in Westminster on 7 January 2008. 

A mail forwarding business is carried on in Westminster, if the postal address that is made available and to which postal packets may be sent, is in the area of Westminster.

‘Mail forwarding business’ is defined in section 75 of the Act as, the business, carried out for reward, of making available to a person a postal address to which postal packets may be sent, and doing either or both of the following- a) holding postal packets so sent for collection by that person or his agent; b) forwarding, by whatever means, postal packets so sent to that person. 

Requirement to Register with the Council

A person is not permitted to carry on a mail forwarding business in Westminster without being registered with the Council.

This applies whether the mail forwarding business is carried on alone or in conjunction with any other business.

An application in writing to the Council for registration is required to be made giving details of the name and address of the applicant and the address of each place in the borough occupied by the applicant for the purposes of the business.

Should the name and address of the applicant or the address of each place of business change after registration then it is a requirement to notify the council with 14 days of the change to enable the council to amend the registered details.

Record Keeping

A person carrying on a mail forwarding business is required to keep a record of :

a) the full name, address and telephone number of all persons for whom post is received or who has requested postal packets received to be held or forwarded to them 

b) the nature of the business (if any) carried out by that person

c) any instructions as to the delivery or forwarding of postal packets

d) the name and address of person(s) to whom postal packets are
to be forwarded, if different from a) above

e) copies of originals of two documents of a type approved by the council for the purposes of identifying the person and verifying the address(es) required in a) above.

A client’s name and address in a) above must not be the name and address of another mail forwarding business.

The name and address to be kept in a) above must be

a) in the case of an individual, his private address

b) in the case of a body corporate or partnership 
(note, a body corporate includes a limited company)

1) the registered office address or the principal address of the partnership and 

2) the names and private addresses of the directors or partners or another person directly or indirectly responsible for the management of the body corporate or partnership and

3) the address of the principal place of business of the body corporate or partnership if different from any of the addresses mentioned in 1) and 2) above.

This will mean that apart from where a client is a sole individual, a contract with a mail forwarding business will require more than one name and address to be held by a mail forwarding business.

Retention and Inspection of Records

A mail forwarding business is required to keep records of clients for at least a year after the end of an arrangement (or contract) to hold or forward on postal packets and to keep them available for inspection by the police or any authorised officer at all reasonable times.

Offences

It is a criminal offence for a person to:

• fail to comply with the provisions of section 75 or;

• furnish false information –

• in making an application for registration or notifying the Council of any alteration to the registration particulars held or
• to a mail forwarding business in relation to particulars the business is required to keep;

• make a false entry in records kept by a person carrying on a mail forwarding business. 

It should be noted from the above, that a client will commit an offence if they provide required information that is false.

In relation to the investigation of an offence,Trading Standards Officers have the power to enter premises and inspect and seize goods and documents.

Penalties

The maximum penalty for committing an offence, is a fine not exceeding £5000 on summary conviction.

Transition Period

The legislation allows a period of four weeks from the date of coming into force before the requirements to register and keep records apply to a business. 
The legislation comes into force on 7 January 2008, therefore the requirements to register and keep records are effective from 4 February 2008.

If an application has been made for registration during the four week period then the business may lawfully continue to carry on the business and need not comply with the requirement to keep records until the Council issues a certificate of registration.

Documents for Identification and Verification Purposes.

The legislation requires copies to be kept of the originals of two documents of a type approved by the council for the purposes of identifying a person and verifying their address.

Types of documents approved by Westminster Council are listed in Annex 1 attached. 

In order to identify a person one document should be taken from the photo identification in list 1 and to verify their address, a second document from list 2.

In the case of a body corporate (limited company) the certificate of incorporation will be considered as verifying the name of the body corporate. A second document should be taken from list 2 to verify the registered office address.

Please Note-
In order to ensure a copy of a document is that of the original, as required by law, it is strongly recommended that the copy is taken by yourself from the original document. Alternatively you may wish to ask for a certified copy of an original document. It is recommended that a certified copy of a document is certified by a professional person. It is up to you to take steps to satisfy yourself that the copy you hold is that of the origina

This guidance document has been prepared by Westminster Community Protection Department for the assistance of businesses in Westminster. It is not an authoritative interpretation of the law and is intended for guidance purposes only.

Annex 1: Documents Approved by the City of Westminster for Identification Purposes

Two documents one from each list is required.

1. Photo identification – Proof of identity

• Passport

• Driving Licence (with photocard)

• National Identity Card

• HM Forces Identity Card

• A current student card

• Employment identification card

• Disabled drivers blue pass

2. Proof of address (provided both name and address is shown)

• Gas or Electricity bill

• Telephone bill

• Water bill

• Mortgage Statement

• Council Tax bill

• Bank / Building Society statement (includes credit card/ store card bill)

• TV licence

• Valid insurance certificate

• Pay slip

• P45/P60 statement

• Financial statement (e.g. pension, endowment)

• Current benefit book

• Letter from Benefits Agency

• HM Revenue and Customs Notice of Coding

• Student hall of residence agreement or other proof of accommodation