money laundering regulations

Why do we have Money Laundering Regulations?

The anti Money Laundering Regulations (MLR) were introduced to protect UK financial services and related service providers. As the name implies, they are intended to prevent the laundering of money between businesses and individuals. They came into effect in December 2007 and have since been updated with several amendments.

Whilst you may associate banks and other financial institutions with these regulations, there are many other service providers that need to adhere to the requirements. Any business that falls under the regulations is legally responsible for implementing MLR policies. They must be registered with an authorised body (for example the FSA) or HM Revenue & Customs.

In simple terms, the regulations exist to prevent people or business from ‘cleaning’ money that may have been obtained illegally. By passing money through one or more businesses it becomes difficult for the authorities to trace the origin of the money. Making service providers responsible for identifying clients and implementing good practices, laundering money become more difficult.

Company Formation

  • Full company documents

Who do we report to?

HMRC supervises the following four business sectors-

  • Money Service Businesses
  • High Value Dealers
  • Trust or Company Service Providers
  • Accountancy Service Providers

You will note that company service providers are included in the list. As we provide company formation and mail services, our company is supervised by HMRC as a company service provider. We have to register under the Money Laundering Regulations and supply documentation to HMRC.

You should be re-assured to note that our company is registered under MLR and we adhere to all the legal requirements imposed by the regulations.