What Is Money Laundering?
Going by its dictionary and legal definition, money laundering is nothing but a method through which one conceals the origin of money that have been obtained illegally by making the currency go through series of banking transfers or commercial transactions. In simple words, money laundering is the process adopted by the individual or by a group of people by which the dirty money or black money is made to look clean or legitimate. UK government has always kept a very stern approach when it comes to money laundering and the normal punishment for principal money laundering offences carry a penalty of 14 years of imprisonment.
In the United Kingdom, the money laundering is governed and regulated by The Proceeds of Crime Act 2002 and as per the act; it criminalizes the use of any property that is not obtained through legitimate ways. The criminal property could be anything including money, shares or property. Examples of a criminal conduct are proceeds of tax evasion, the receipt of a bribe etc and the government has made it mandatory for all the businesses to be regulated by the Money Laundering Regulations and in case your business is not regulated by the same, then you must inform the HMRC to report any suspicious activity related to money laundering. The main reason behind the introduction of Money Laundering Regulations was to prevent and detect any crime, apart from protecting the country’s financial system and the regulations are applicable to the nearly all the business sectors, including:
UK government is very clear about its stand when it comes to money laundering and in order to stand true to its take on the same, it has recently introduced a new government body by the name of The Office For Professional Body Anti-Money Laundering Supervision, and will work with nearly all the money laundering supervisors in order to help improve the standards of the money laundering law in the country. The new body will also be directly supervising the 22 accountancy and legal professional body registered in the country. With the introduction of the new body, i.e. OPBAS, the UK government wants to give a clear message to the criminals and terrorists on the clear and stern stand of the country as total.
Also Read: Taxation payments to HMRC
Money Laundering Regulations by HMRC
The Her Majesty’s Revenue and Customs is the governing and supervisory body for Money Laundering Regulations and in order to ensure that you are well within the law, it is important for you to check if you need to register your business with the HMRC for availing its money laundering supervision. If you carry out the activities as mentioned below and are not already registered for the money laundering supervision with the government approved bodies, then you must register for the HMRC money laundering supervision:
- If you are into money service businesses that are not supervised by the Financial Conduct Authority (FCA)
- If you are bill payment service providers not supervised by the Financial Conduct Authority (FCA)
- If you have estate agency businesses
- If you are accountancy service providers not supervised by Financial Conduct Authority (FCA) or any other professional body
- If you are high value dealers
- If you are trust or company service providers and have not registered with the FCA or a professional body
Also Read: Financial Reporting Standard
If you are carrying out the above mentioned activities and businesses and are not registered with the HMRC, then you can use their online service for the following:
Fees You Will Pay For Money Laundering Supervision
As mentioned above, for you to avail the HMRC money laundering supervision, you pay the applicable fees, which include the following:
As mentioned above, in order to register for the money laundering supervision service of the HMRC, it is important for you to pay the applicable fees both at the time of your first application and also at the time of renewal of your application. HMRC online system is quite easy and user friendly to be followed by anyone and everyone and it has been designed in the simplest way possible. Once you have filled in all the details of your business, it will automatically work how much you have to pay to the HMRC. When you submit your form for application or renewal, you will get a 14 digit payment reference number starting from X, which you have to remember while making the applicable fees. You have the option of making the payment by using a debit card or credit card, or CHAPS or BACS by using the following details:
In order to make sure that your payment gets processed fast, it is important that you enter all the details correctly and run through the details before submitting the form.