HMRC REMINDS BUSINESSES THAT EXTERNAL CONSULTANTS CANNOT ACT AS A NOMINATED OFFICER UNDER THE MLR REGULATIONS

10 August 2010

Businesses that are registered with HM Revenue & Customs under the Money Laundering Regulations are reminded that external consultants cannot act as a businesses' Nominated Officer.

The Financial Services Authority (FSA) has recently censured and banned three directors from acting as senior managers for failing to meet their supervisory standards. The FSA investigation found that the directors had been relying too heavily on external consultants for advice on how to run their business.

HM Revenue & Customs (HMRC) take the same view to the FSA in relation to businesses meeting their obligations under the Money Laundering Regulations. Whilst HMRC has no objection to businesses getting advice from external consultants regarding their obligations under the Regulations, the responsibility for complying with the Regulations remains on the business rather than any consultant.

Some consultants have recently offered their services to act as the Nominated Officer for a business. HMRC, however, does not consider that a consultant outside the business can be appointed Nominated Officer for any of the businesses HMRC supervise under the Regulations. See HMRC statement

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