Proceeds of Crime Act 2002

[F1 2. (1) A business is not in the regulated sector to the extent that it consists of— U.K.

(a) the issuing of withdrawable share capital within the limit set by [F2 section 24 of the Co-operative and Community Benefit Societies Act 2014 (maximum interest in a society's withdrawable shares)], or the acceptance of deposits from the public within the limit set by [F3 section 67(2) of that Act (registered society with withdrawable share capital not to carry on banking etc)], by [F4 a registered society within the meaning of that Act];

(b) the issuing of withdrawable share capital within the limit set by section 6 of the Industrial and Provident Societies Act (Northern Ireland) 1969 (maximum shareholding in society), or the acceptance of deposits from the public within the limit set by section 7(3) of that Act (carrying on of banking by societies), by a society registered under that Act;

(c) the carrying on of any activity in respect of which a person who is (or falls within a class of persons) specified in any of paragraphs 2 to 23, [F5 26] to 38 or 40 to 49 of the Schedule to the Financial Services and Markets Act 2000 (Exemption) Order 2001 is exempt;

(d) the exercise of the functions specified in section 45 of the Financial Services Act 1986 (miscellaneous exemptions) by a person who was an exempted person for the purposes of that section immediately before its repeal; F6 ...

(e) the engaging in financial activity which fulfils all of the conditions set out in paragraphs (a) to (g) of sub-paragraph (3) of this paragraph by a person whose main activity is that of a high value dealer; F7 ...

F7 (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F8 (g) the carrying on by a local authority (within the meaning given in article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001) of an activity which would be a regulated activity for the purposes of the Financial Services and Markets Act 2000 but for article 72G of that Order; or

(h) the preparation of a home report, which for these purposes means the documents prescribed for the purposes of sections 98, 99(1) or 101(2) of the Housing (Scotland) Act 2006.]

(2) For the purposes of sub-paragraph (1)(e) a “high value dealer” means a person mentioned in paragraph 1(1)(q) when carrying on the activities mentioned in that paragraph.

(3) A business is not in the regulated sector to the extent that it consists of financial activity if—

(a) the person’s total annual turnover in respect of the financial activity does not exceed [F9 £100,000];

(b) the financial activity is limited in relation to any customer to no more than one transaction exceeding 1,000 euros, whether the transaction is carried out in a single operation, or a series of operations which appear to be linked;

(c) the financial activity does not exceed 5% of the person’s total annual turnover;

(d) the financial activity is ancillary to the person’s main activity and directly related to that activity;

(e) the financial activity is not the transmission or remittance of money (or any representation of monetary value) by any means;

(f) the main activity of the person carrying on the financial activity is not an activity mentioned in paragraph 1(1)(a) to (p) or (r) [F10 to (t)]; and

(g) the financial activity is provided only to customers of the person’s main activity and is not offered to the public.

(4) A business is not in the regulated sector if it is carried on by—

(a) the Auditor General for Scotland;

(b) the Auditor General for Wales;

(c) the Bank of England [F11 (acting otherwise than in its capacity as the Prudential Regulation Authority)];

(d) the Comptroller and Auditor General;

(e) the Comptroller and Auditor General for Northern Ireland;

(f) the Official Solicitor to the Supreme Court, when acting as trustee in his official capacity; or

(g) the Treasury Solicitor.]

Textual Amendments

F1 Sch. 9 Pts. 1, 2 substituted (15.12.2007) by The Proceeds of Crime Act 2002 (Business in the Regulated Sector and Supervisory Authorities) Order 2007 (S.I. 2007/3287), arts. 1, 2

F2 Words in Sch. 9 para. 2(1)(a) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 81(2) (with Sch. 5)

F3 Words in Sch. 9 para. 2(1)(a) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 81(3) (with Sch. 5)

F4 Words in Sch. 9 para. 2(1)(a) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 81(4) (with Sch. 5)

F5 Word in Sch. 9 para. 2(1)(c) substituted (26.6.2017) by The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692), reg. 1(2), Sch. 7 para. 6(7)(a) (with regs. 8, 15)

F6 Word in Sch. 9 para. 2(1)(d) omitted (26.6.2017) by virtue of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692), reg. 1(2), Sch. 7 para. 6(7)(b) (with regs. 8, 15)

F7 Sch. 9 para. 2(1)(f) and word repealed (15.1.2012) by Localism Act 2011 (c. 20), s. 240(1)(k)(m), Sch. 18 para. 2(b), Sch. 25 Pt. 29

F8 Sch. 9 para. 2(1)(g)(h) inserted (26.6.2017) by The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692), reg. 1(2), Sch. 7 para. 6(7)(c) (with regs. 8, 15)

F9 Word in Sch. 9 para. 2(3)(a) substituted (26.6.2017) by The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692), reg. 1(2), Sch. 7 para. 6(7)(d)(i) (with regs. 8, 15)

F10 Words in Sch. 9 para. 2(3)(f) inserted (26.6.2017) by The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692), reg. 1(2), Sch. 7 para. 6(7)(d)(ii) (with regs. 8, 15)

F11 Words in Sch. 9 para. 2(4)(c) inserted (1.3.2017) by The Bank of England and Financial Services (Consequential Amendments) Regulations 2017 (S.I. 2017/80), reg. 1, Sch. para. 13