New HMRC anti-money laundering regulations

New anti-money laundering regulations are due to come into force shortly. The regulations require firms providing trustee services, or firms that are company service providers, to register with HMRC — unless they are already authorised by the FSA or a designated body. The Faculty and the Institute of Actuaries are not included on the list of designated bodies for this purpose.

The Profession has contacted the Treasury over what is required for the Faculty and the Institute to be added to this list. As the Profession only regulates firms with regard to the DPB, it may be difficult to demonstrate that it can fulfil the criterion of sufficient size and influence. It is unlikely that the Profession will be successful in getting the Faculty and the Institute included on the designated body list before 2009.

This means that if you are not authorised by the FSA as an APF and you provide trustee services to clients, you will need to register with HMRC. While HMRC has been clear that firms that provide trustee services as a business to clients will need to register, there has been some uncertainty as to whether, for example, a retired individual acting as trustee for several schemes and receiving payments could conceivably be judged to be providing trustee services ‘as a business’ and so need to register.

Given this uncertainty, HMRC has extended the deadline for registration applications to 31 May and has said that, if you have not yet registered, it might be advisable to wait until further guidance is published. For more details about the regulations, please visit www.hmrc.gov.uk/mlr/index.htm