BOOM!
This post is relevant to money service businesses which supervised for anti money laundering (AML) by His Majesty’s Revenue and Customs (HMRC). So, if you’re a High Value Dealer or a “pure” pawnbroker, this doesn’t apply to you. If you offer foreign currency or money transfer, then it does.
BOOMs are subject the fit and proper test. HMRC must be satisfied that the BOOM is suitable to hold such a role. (Criminal record, history of AML failures, and honesty more generally all figure.)
A BOOM is a beneficial owner, officer or manager. So:
individuals who are running the business either on their own or in partnership
officers of the business including director and company secretary
managers who are engaged in the provision of regulated activity
managers who are involved in the development, or monitoring of policies and procedures related to regulated activity
the nominated officer
a beneficial owner of the business
a person who is effectively directing the business
The above is taken from HMRC Guidance. The guidance is also for Trust and Company Service Providers too, and can at times, be a little confusing. Feel free to get in touch with us and we’ll help you work out who should be registered in your organisation (free of charge). That said - here are the definite ones that must be registered:
Anyone who owns 25% or more of the business.
ALL company directors and the company secretary (as per companies house registration)
The Nominated Officer or MLRO
A signatory to the bank account
It’s around “managers” that things get a little convoluted, but we can help you work through that.
The process for registering someone is straightforward - it’s essentially a modification of your application to be registered with HMRC as a MSB. There’s a per person fee of £150, which is payable once. It’s not annual.
If you don’t register your BOOMs, then you’re in breach of the Money Laundering Regulations, and may find yourself warned, fined and de-registered.
HMRC are in the midst of a program of enforcement visits. Some are scheduled, while others are unscheduled. Investigators will, as a matter of course, compare Companies House records with the fit and proper registrations, so if you have five directors but only one fit and proper, you’re in trouble before you start.