ECSH40532 | Businesses who can be solely supervised by another supervisory body: Money service businesses (MSBs)

HMRC and the Financial Conduct Authority (FCA) act as a supervisor for MSBs that provide money transmission services. These MSBs will either be:

• Supervised exclusively by HMRC.

• Supervised exclusively by the FCA, or

• Supervised by HMRC and authorised by the FCA.

Supervised exclusively by HMRC

A list of the MSBs that should register with HMRC for anti-money laundering supervision is available on GOV.UK.

Supervised exclusively by the FCA

A list of the MSBs that should register with the FCA for anti-money laundering supervision is available on the FCA website.

Supervised by HMRC and authorised by the FCA

Money transmitters must be supervised by HMRC under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) while also being authorised by the FCA under the Payment Service Regulations 2017 (PSRs). Further information on the PSRs is available in ECSH24500 Payment Service Regulations 2017.

If a business states that it is authorised by the FCA under the PSRs you should follow the guidance in ECSH41530.

Trading whilst unregistered

If you find in the course of carrying out the relevant checks, that the business has been undertaking relevant activity without being registered for anti-money laundering supervision, then the business would be in breach of MLR 2017 and a penalty for trading whilst unregistered should be considered.