ECSH42700 - Addition of a new sector to existing registrations
Source: gov.uk (2025-01-20)


(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

The register

Under regulation 54(2) of The Money Laundering, Terrorist Finanacing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), Economic Crime-Supervision (EC-S) must maintain a register of relevant persons it supervises who are high value dealers, money service businesses, trust or company service providers, bill payment service providers and telecommunication, digital and IT payment service providers.

Regulation 55(3), states that EC-S may maintain a register for relevant persons it supervises who are auditors, external accounts and tax advisors, estate agent businesses, art market participants and letting agent businesses. EC-S is not required to keep a register for these business sectors, but we have chosen to do so. For more information see ECSH40500 - who needs to register (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh40500).

There is no requirement in MLR 2017 for these registers to be separate and EC-S has the discretion to keep the register(s) under MLR 2017 in any form we think fit by virtue of regulation 54(3) and regulation 55(5).

EC-S currently maintains a single published register (supervised business register - SBR) for all EC-S supervised sectors under regulations 54(2) and 55(3). There is a requirement in regulation 55(4) that where we decide to maintain a register, we must take reasonable steps to bring it to the attention of those relevant persons it includes, and we do this by publishing the SBR on gov.uk (https://www.gov.uk/guidance/money-laundering-regulations-supervised-business-register).

Addition of a new sector

Where an EC-S registered business starts undertaking additional activity outside of the activity it is registered for, it must inform EC-S: we regard this as a material change.

Businesses must inform EC-S of a material change within 30 days of the occurrence of the change (where the change also includes the appointment or change of a nominated officer, they must inform EC-S within 14 days).

There is GOV.UK guidance on making changes to a registration.

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A business that is registered and adds an additional sector is treated as a material change to the original application. (This content has been withheld because of exemptions in the Freedom of Information Act 2000) When a business adds an additional sector, EC-S will carry out all relevant checks, including approval (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh45075) and/or fit and proper (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh45030) (F&P) checks on the business and its beneficial owners, officers and managers (BOOMs).

A business can also update EC-S about the addition of a new sector to their registration by contacting the MLRCIT inbox.

Adding a fit and proper (F&P) sector to an approvals registration

If a business is registered as an approvals sector and adds F&P sector to their registration, they are required to pay the fee for F&P test (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh44625). If a business does not pay the F&P fee, its registration, covering all sectors it is registered for, may be cancelled.

If the business has added a F&P sector as part of its annual refresh, the business and its BOOMs will be subject to the F&P test (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh45030). They should not trade in the F&P sector before they have been found F&P.

If we determine that the business and its BOOMs are F&P to run that business, the business will receive a notification to show that its registration for the new sector has been approved and its government gateway will be updated as ‘application approved’. For more information see ECSH41025 (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh41025).

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)