UK Opens Consultation On Money Laundering Supervision Fees

; posted on
August 21st, 2018

HM Revenue and Customs (HMRC) launched a consultation on the way it charges fees to the businesses it supervises under the Money Laundering, Terrorist Financing and Transfer of Funds (Information Payer) Regulations (MLR) 2017. The consultation will end on September 21, 2018.

Background and Current Fees Structure

The MLR 2017 allows HMRC to charge fees to applicants for registration and to the businesses it supervises, to meet any expenses it reasonably incurs in providing supervision. Total fees income must not exceed those costs.

HMRC currently charges four types of fee to registered businesses:

  • A £130 premises registration fee renewed annually for each premises a business operates from.
  • A £100 application fee. This is a one-off fee to cover the cost of the administration work for new businesses.
  • A £100 fit & proper persons test fee for person exercising effective control of a money service business or trust or company service provider.
  • A £40 approval test fee for person exercising effective control of the business of an accountancy service provider, estate agency business or high value dealer.

Fee Structure Options

Three revised options are published for consultation:

  • Retain the current fees structure but increase the level of fees significantly.
  • Alter the fee structure to no longer use the number of premises and charge a two-part fee, made of a flat fee of £100 per business plus a turnover based fee.
  • Retain the current fees approach, of charging annually for each premises a business operates from, but with a scaling fee per premises. The premises fee will increase with the number of premises a business registers with HMRC.

HMRC will consider all the responses to these options and publish a summary of responses later this year.

Source: HMRC

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