I'm just setting up a new bookkeeping/payroll business and wondered if anyone could tell me more about the new money laundering regulations. I believe the charge has increased to £95 a year and wanted to confirm that I definately need to be regsitered.
Under the Money Laundering Regulations all external accountants are required to be supervised. The new ML Regulations take effect on 15 December 2007.
The Government has included a definition of accountant and tax adviser that refers to certain activities. The term 'accountant' is defined in the Regulations as any person who by way of business provides accountancy services. Activities included within the definition of accountant or tax adviser are:
Chartered accountant Professional book-keeping services to a third party Chartered certified accountant Taxation adviser VAT consultant Management Accountant Accounting Technician Chartered tax adviser Law firm offering full business services Payroll agent Repayment agent.
Activities excluded from the definition of an accountant or tax adviser are:
Internal bookkeeper Accounting software training Property service administration Relative, friend, voluntary service that offers accountancy/ or tax advice.
The Regulations state that the term 'external accountants' excludes accountants employed by:
(a) public authorities (b) undertakings which do not by way of business provide accountancy services to third parties. (vi) company secretarial matters (vii) accounting systems and management reporting.
Therefore if you offer a paid book-keeping service to clients you need to register. If you are not a member of a professional accountancy body and offer your services as an external accountant (see terms above), you are required by law to register with HMRC. The penalty for failure to do so will be an unlimited fine and possibly imprisonment.
I believe HMRC charge £95 for its anti-money laundering services. You can get a registration pack by telephoning the National Advice Service on 0845 010 9000.
I just had a conversation with a man at the National Advice Service ref money Laundering regs. I told him I was in the process of setting up my own business and he said I didn't have to register as the only 'cash' I'd be handling would be receipt of any monies earned.
I am slightly confused..I am sure he understood I was planning to operate as a sole trader offering bookkeeping services and he assured me registration was not necessary. Dont know if anyone could tell me anything different?
I spoke to the NAS and was told that as a bookkeeper I would need to regsiter under the latest legislation. I know a few accountants who have been under the regulations for a few years now, and they have all needed to comply with the MLR despite not actually handling any cash. I think just seeing it go through the books may be enough now.
Another source being the Institute of Certified Bookkeepers website seems to confirm this. In the news section it states that:
'HM Treasury has appointed the Institute of Certified Bookkeepers as a Supervisory Body under the Money Laundering Regulations 2007. Under the latest extension to the legislation, bookkeeping is listed as a regulated profession, which means that bookkeepers must be supervised to ensure that they remain compliant. Where people are not members of a Treasury appointed supervisory body they will be regulated directly by HMRC.'
Thanks for your reply. The last thing you need when trying to find out what's what, is getting the wrong information from the the people who are supposed to be advising you! I'll ring them again and try and get the elusive registration pack!
