New money laundering registration guidance: HMRC clarifies position for trustees of occupational pension schemes

On 31 July 2008 Her Majesty's Revenue & Customs (HMRC) published updated guidance on the registration requirements for Trust or Company Service Providers (TCSPs) and Accountancy Service Providers (ASPs) under the new Money Laundering Regulations.

Trustees who provide services "by way of business" as a TCSP before 15 December must apply to register with HMRC before 30 September 2008. However, firms or sole practitioners or directors of corporate trustees who only perform professional trustee services in relation to occupational pension schemes do not need to register.

Do I need to register?

If you only provide trustee services to occupational pension schemes or to other low risk trusts listed above, you will not be classified as a TCSP, and will not be required to register with HMRC.

If you provide other services which may be captured by the money laundering requirements, you may still be required to register if you provide those services "by way of business". If this is the case, you will need to download and complete form MLR100 from the HMRC website and return it by 30 September at the latest. A registration fee is payable.

When deciding whether you are acting by way of business, the guidance suggests that you consider the following questions:

• Have you set up the business with the intention of undertaking the relevant activity?
• Do you advertise or publicise the provision of your relevant services or receive referrals from other businesses?
• Is the relevant activity carried out with a view to profit?
• Is the relevant activity actively pursued with reasonable or recognisable continuity?

If the answer to all of these questions is 'yes', then HMRC considers that you are carrying out the activity by way of business and you will need to register. If the answer to all of these questions is no, then in HMRC's view you are not carrying out the activity by way of business and you will not need to register. If you can only answer 'no' to some of these questions, and you are still unsure whether you are providing services by way of business, you should contact HMRC for a decision.

Those planning to set up in business as a new TCSP will need to apply to HMRC to register before carrying on that business.

What if I have already applied to register?

HMRC has stated its intention to write to TCSPs who have already applied to register and may therefore be affected by the updated guidance. If you fall into this category and have not heard from HMRC by 19 August, you will need to contact it on 0845 010 9000.

If you have already paid a registration fee and, as a result of the revised guidance, you are no longer required to register, HMRC has indicated that it will issue a refund.

What if I am still unsure about whether or not to register?

If you are still unsure about whether or not the registration requirements apply to you, please contact your advisers at Wragge & Co. You may also choose to contact HMRC. Please note, apart from deciding whether or not an individual or firm is acting "by way of business", HMRC has stated it will not give written reassurance to a business as to whether its activities fall within the scope of the Regulations or that it does not need to register.