The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

CHAPTER 2 U.K. Registration

Interpretation U.K.

53.  For the purposes of this Chapter—

“registering authority” means—

(a)

the FCA, in relation to—

(i)

those relevant persons which it is required to register under regulation 54(1); and

(ii)

those relevant persons it decides to register under regulation 55(1);

(b)

the Commissioners, in relation to—

(i)

those relevant persons which they are required to register under regulation 54(2); and

(ii)

those relevant persons they decide to register under regulation 55(3);

“telecommunication, digital and IT payment service provider” means an undertaking which provides payment services [F1 consisting of the execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator acting only as an intermediary between the payment service user and the supplier of the goods and services (and terms used in this definition which are defined in the Payment Services Regulations 2017 have the meanings given in those Regulations).]

Textual Amendments

F1 Words in reg. 53 substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 26(b) (with reg. 3)

Duty to maintain registers of certain relevant persons U.K.

54.—(1) The FCA must maintain a register of those relevant persons who—

(a) are authorised persons, and

(b) have notified the FCA under regulation 23 that they are acting, or intend to act, as a money service business or a trust or company service provider.

(2) The Commissioners must maintain a register of those relevant persons who are not included in the register maintained by the FCA under paragraph (1) and are—

(a) high value dealers;

(b) money service businesses;

(c) trust or company service providers;

(d) bill payment service providers, for which the Commissioners are the supervisory authority;

(e) telecommunication, digital and IT payment service providers, for which the Commissioners are the supervisory authority.

(3) Subject to paragraph (4) the registering authorities may keep the registers required by this regulation in any form they think fit.

(4) The register maintained by the Commissioners must include entries in the registers maintained under regulation 25 of the Money Laundering Regulations 2007 M1 which were current immediately before the date that regulation was revoked.

(5) A registering authority may publish or make available to public inspection all or part of a register maintained by it under this regulation.

Marginal Citations

M1 S.I. 2007/2157. Regulation 25 was amended by S.I. 2009/209.

Power to maintain registers U.K.

55.—(1) The FCA may maintain a register of Annex 1 financial institutions.

(2) For the purposes of paragraph (1), an “Annex 1 financial institution” is a financial institution which—

(a) falls within regulation 10(2)(a), and

(b) is not—

(i) a money service business;

(ii) an authorised person;

(iii) a bill payment service provider; or

(iv) a telecommunication, digital and IT payment service provider.

(3) The Commissioners may maintain registers of relevant persons who are not supervised by any of the professional bodies listed in Schedule 1, and who are—

(a) estate agents,

(b) auditors;

(c) external accountants;

(d) tax advisers;

(e) bill payment service providers; or

(f) telecommunication, digital and IT payment service providers.

(4) Where a registering authority decides to maintain a register under this regulation, it must take reasonable steps to bring its decision to the attention of those relevant persons in respect of which the register is to be established.

(5) Subject to paragraph (6) a registering authority may maintain a register under this regulation in any form it thinks fit.

(6) The registers maintained by the registering authorities must include entries in any equivalent registers maintained under regulation 32 of the Money Laundering Regulations 2007 M2 which were current immediately before the date that regulation was revoked.

(7) A registering authority may publish or make available to public inspection all or part of a register maintained by it under this regulation.

Marginal Citations

M2 Regulation 32 was amended by S.I. 2013/1881 and 2014/631.

Requirement to be registered U.K.

56.—(1) Unless a person in respect of whom the registering authorities are required to maintain a register under regulation 54 is included in the appropriate register, or paragraph (2) applies, that person must not act as a—

(a) high value dealer;

(b) money service business;

(c) trust or company service provider;

(d) bill payment service provider; or

(e) telecommunication, digital and IT payment service provider.

(2) This paragraph applies if the person concerned has applied for registration in the register, but that application has not yet been determined.

(3) A relevant person which is registered in the register maintained by the Commissioners under regulation 25 or 32 of the Money Laundering Regulations 2007 M3 is to be treated as included in the appropriate registers maintained by the Commissioners under regulation 54 or 55 of these Regulations for the purpose of paragraph (1)—

(a) during the period of 12 months beginning with the date on which these Regulations come into force, and

(b) after that period, if the person concerned has provided the additional information required for registration under regulation 57 within the period referred to in sub-paragraph (a).

(4) A relevant person which is registered in the register maintained by the FCA under regulation 32 of the Money Laundering Regulations 2007 is to be treated as included in the register maintained by the FCA under regulation 55(1) for the purposes of paragraph (1).

(5) Where a registering authority decides to maintain a register under regulation 55(1) or (3) in respect of any description of relevant persons and establishes a register for that purpose, a relevant person of that description must not carry on the business or profession in question for a period of more than 12 months beginning with the date on which the registering authority establishes the register unless—

(a) that person is included in the register, or

(b) that person has applied for registration in the register, but that application has not yet been determined.

Marginal Citations

M3 S.I. 2007/2157.

Applications for registration in a register maintained under regulation 54 or 55 U.K.

57.—(1) A person applying for registration in a register maintained under regulation 54 or 55 (“an applicant”) must make an application in such manner and provide such information as the registering authority may specify.

(2) The information which the registering authority may specify includes, among other things—

(a) the applicant's full name and where different the name of the business;

(b) where the applicant is an individual, the applicant's date of birth and residential address;

(c) the nature of the business;

(d) the address of the head office of the business with its company number (in the case of a company), and of any branches the business has in the United Kingdom;

(e) the full name of the nominated officer (if any);

(f) a risk assessment which satisfies the requirements in regulation 18;

(g) information as to the way in which the business meets the requirements set out in—

(i) these Regulations;

(ii) Part 3 of the Terrorism Act 2000 (terrorist property) M4 ;

(iii) Part 7 of the Proceeds of Crime Act 2002 (money laundering) M5 ; and

(iv) Part 8 of the Proceeds of Crime Act 2002 (investigations);

(h) in relation to a money service business or a trust or company service provider—

(i) the full name, date of birth and residential address of any officer, manager or beneficial owner of the business or service provider; and

(ii) information needed by the registering authority to decide whether it must refuse the application pursuant to regulation 58;

(i) in relation to a money service business, the full name and address of any agent it uses for the purposes of its business;

(j) where the registering authority is not the supervisory authority for the applicant—

(i) the name of the applicant's supervisory authority;

(ii) confirmation from the applicant's supervisory authority that any person mentioned in regulation 58(1) is a fit and proper person within the meaning of that regulation;

(k) whether the applicant, or any person named in the application, has been convicted of a criminal offence listed in Schedule 3.

(3) At any time after receiving an application and before determining it, the registering authority may require the applicant to provide, within 21 days beginning with the date on which the requirement is issued, such further information as the registering authority reasonably considers necessary to enable it to determine the application.

(4) If at any time after the applicant has provided the registering authority with any information under paragraph (1) or (3) (whether before or after the applicant is registered)—

(a) there is a material change affecting any matter contained in that information; or

(b) it becomes apparent to the applicant that the information contains an inaccuracy,

the applicant must provide the registering authority with details of the change or a correction of the inaccuracy within 30 days beginning with the date of the occurrence of the change (or the discovery of the inaccuracy) or within such later time as may be agreed with the registering authority.

(5) The obligation in paragraph (4) applies also to material changes or inaccuracies affecting any matter contained in any supplementary information provided pursuant to that paragraph.

(6) Any information to be provided to the registering authority under this regulation must be in such form and verified in such manner as the authority may specify.

Marginal Citations

M4 2000 c.11.

M5 2002 c. 29.

Fit and proper test U.K.

58.—(1) The registering authority must refuse to register an applicant for registration in a register maintained under regulation 54 as a money service business or as a trust or company service provider, if it is satisfied that—

(a) the applicant;

(b) an officer or manager of the applicant;

(c) a beneficial owner of the applicant; or

(d) where the applicant is a money service business—

(i) any agent used by the applicant for the purposes of its business; or

(ii) any officer, manager or beneficial owner of the agent,

is not a fit and proper person to carry on that business.

(2) Where the FCA has decided to maintain a register of Annex I financial institutions under regulation 55, paragraph (1) applies in relation to those institutions as it applies to a money service business and a trust or company service provider.

(3) A person who has been convicted of a criminal offence listed in Schedule 3 is to be treated as not being a fit and proper person to carry on the business for the purposes of paragraph (1).

(4) If paragraph (3) does not apply, the registering authority must have regard to the following factors in determining the question in paragraph (1)—

(a) whether the applicant has consistently failed to comply with the requirements of—

(i) these Regulations;

(ii) the Money Laundering Regulations 2001 M6 ,

(iii) the Money Laundering Regulations 2003 M7 , or

(iv) the Money Laundering Regulations 2007 M8 ; and

(b) the risk that the applicant's business may be used for money laundering or terrorist financing.

(5) Where the applicant is a money service business, the registering authority may, in determining the question in paragraph (1), take account of the opinion of the applicant as to whether any person referred to in paragraph (1)(d) is a fit and proper person to carry on the business.

(6) Where the registering authority is not the supervisory authority of the applicant, the registering authority must consult the supervisory authority and may rely on its opinion as to whether or not the applicant is a fit and proper person to carry on the business referred to in paragraph (1).

Marginal Citations

M6 S.I. 2001/3641.

M7 S.I. 2003/3075.

M8 S.I. 2007/2157.

Determination of applications for registration under regulations 54 and 55 U.K.

59.—(1) Subject to regulation 58, the registering authority may refuse to register an applicant for registration in a register maintained under regulation 54 or 55 if—

(a) any requirement of, or imposed under, regulation 57 has not been complied with;

(b) it appears to the registering authority that any information provided pursuant to regulation 57 is false or misleading in a material particular;

(c) the applicant has failed to pay—

(i) a penalty imposed by the authority under Part 9;

(ii) a charge imposed by the authority under Part 11; or

(iii) a penalty or charge imposed by the authority under regulation 35(1) or 42(1) of the Money Laundering Regulations 2007;

(d) where the registering authority is not the applicant's supervisory authority, the supervisory authority opposes the application for registration on reasonable grounds; or

(e) the registering authority suspects, on reasonable grounds—

(i) that the applicant will fail to comply with any of its obligations under—

(aa) these Regulations;

(bb) Part 3 of the Terrorism Act 2000 M9 ; or

(cc) Parts 7 and 8 of the Proceeds of Crime Act 2002 M10 ;

(the “relevant obligations”);

(ii) that any person whom the applicant has identified as one of its officers or managers will fail to comply with any of the relevant obligations.

(2) Where the Commissioners are the registering authority, they must within 45 days beginning either with the date on which they receive the application or, where applicable, with the date on which they receive any further information required under regulation 57(3), give the applicant notice of—

(a) the decision to register the applicant; or

(b) the following matters—

(i) their decision not to register the applicant;

(ii) the reasons for their decision;

(iii) the right to a review under regulation 94; and

(iv) the right to appeal under regulation 99.

(3) Where the FCA is the registering authority, it must within 45 days beginning either with the date on which it receives the application or, where applicable, with the date on which it receives any further information required under regulation 57(3), give the applicant notice of—

(a) its decision to register the applicant; or

(b) the following matters—

(i) that it is minded not to register the applicant;

(ii) the reasons for being minded to refuse to register the applicant; and

(iii) the right to make representations to it within a specified period (which may not be less than 28 days).

(4) After the expiry of the period referred to in paragraph (3)(b)(iii), the FCA must decide, within a reasonable period, whether to register the applicant and it must give the applicant notice of—

(a) its decision to register the applicant; or

(b) the following matters—

(i) its decision not to register the applicant;

(ii) the reasons for its decision; and

(iii) the right to appeal under regulation 93.

(5) The registering authority must, as soon as practicable after deciding to register a person, include that person in the relevant register.

Marginal Citations

M9 2000 c.11.

M10 2002 c. 29.

Cancellation and suspension of registration in a register under regulation 54 or 55 U.K.

60.—(1) If paragraph (2) applies, the registering authority may suspend (for such period as it considers appropriate) or cancel—

(a) the registration of a money service business or a trust or company service provider in a register maintained under regulation 54; or

(b) the registration of an Annex 1 financial institution in a register maintained under regulation 55 (including the registration of an Annex 1 financial institution previously included in a register maintained under regulation 32 of the Money Laundering Regulations 2007) M11 .

(2) This paragraph applies if, at any time after registration, the registering authority is satisfied that—

(a) the money service business, trust or company service provider, or Annex 1 financial institution (as the case may be); or

(b) any other person mentioned in regulation 58(1) in relation to that business, provider, or financial institution,

is not a fit and proper person for the purposes of regulation 58.

(3) The registering authority may suspend (for such period as it considers appropriate) or cancel a person's registration in a register maintained by it under regulation 54 or 55 if, at any time after registration—

(a) it appears to the authority that any of paragraphs (a) to (e) of regulation 59(1) apply; or

(b) the person has failed to comply with any requirement of a notice given under regulation 66.

(4) The Commissioners may suspend (for such period as they consider appropriate) or cancel the registration of a person who—

(a) was included in a register maintained by the Commissioners under regulation 25 or 32 of the Money Laundering Regulations 2007, and

(b) has not provided the additional information required for registration under regulation 57 within the period of 12 months beginning with the date on which these Regulations come into force.

(5) The Commissioners may suspend (for such period as they consider appropriate) or cancel the registration of a money service business in a register maintained under regulation 54(2)(b) where the money service business is—

(a) providing a payment service in the United Kingdom, or is purporting to do so;

(b) not included in the register of payment service providers maintained by the FCA under regulation 4(1) of the Payment Service Regulations [F2 2017]; and

(c) not a person—

(i) mentioned in paragraphs [F3 (d) to (j)] of the definition of a “payment service provider” in regulation 2(1) of the Payment Services Regulations [F4 2017], or

(ii) to whom regulation 3 or [F5 154(2)] of those Regulations applies.

(6) Where the supervisory authority of a person on the register maintained under regulation 54 or 55 is not the registering authority, the supervisory authority must inform the registering authority as soon as possible if it becomes aware of any grounds on which the registering authority might decide to suspend or cancel that person's registration.

(7) Where the Commissioners decide to suspend or cancel a person's registration they must give that person notice of—

(a) their decision and, subject to paragraph (10), the date from which the suspension or cancellation takes effect;

(b) if appropriate, the period of the suspension;

(c) the reasons for their decision;

(d) the right to a review under regulation 94; and

(e) the right to appeal under regulation 99.

(8) Where the FCA is minded to suspend or cancel a person's registration it must give that person notice—

(a) that it is so minded;

(b) if appropriate, the proposed period of the suspension;

(c) the reasons for being so minded; and

(d) the right to make representations to it within the period specified in the notice (which must not be less than 28 days).

(9) The FCA must then decide, within a reasonable period, whether to suspend or cancel the person's registration and it must give that person notice of—

(a) its decision not to suspend or cancel the person's registration; or

(b) the following matters—

(i) its decision to suspend or cancel the person's registration and, subject to paragraph (10), the date from which the suspension or cancellation takes effect;

(ii) the period of the suspension;

(iii) the reasons for its decision; and

(iv) the right to appeal under regulation 93.

(10) If the registering authority—

(a) considers that the interests of the public require the suspension or cancellation of a person's registration to have immediate effect; and

(b) includes a statement to that effect and the reasons for it in the notice given under paragraph (7) or (9),

the suspension or cancellation takes effect when the notice is given to the person.

Textual Amendments

F2 Word in reg. 60(5)(b) substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 26(c)(i) (with reg. 3)

F3 Words in reg. 60(5)(c)(i) substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 26(c)(ii)(aa) (with reg. 3)

F4 Word in reg. 60(5)(c)(i) substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 26(c)(ii)(bb) (with reg. 3)

F5 Word in reg. 60(5)(c)(ii) substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 26(c)(iii) (with reg. 3)

Marginal Citations

M11 S.I. 2007/2157.