ECSH41035 | Operational guidance: All BOOMs changed after registration has been approved

Introduction

There are occasions where all of the beneficial owners, officers, and managers (BOOMs) of a business will change. This can result in instances where a business is approved on HMRC’s register but no BOOM in the business has passed the approvals check or fit and proper (F&P) test.

Payment of fees

The business’ newly added BOOMs must pay the appropriate fees to undergo the approvals test or the F&P test depending on the relevant activity provided by the business.

Notifying HMRC of a change

A business must notify HMRC within 30 days of its BOOMs changing or else it may be subject to a type 3 penalty. This deadline to notify HMRC of a change is reduced to 14 days when the change relates to a nominated officer or compliance officer. Further guidance on type 3 penalties is available in ECSH82800.

The fit and proper test

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

When a change of ownership is identified, and the business is a money service business or trust or company service provider, you should consider amendments to the registration information and whether they make a substantive difference to money laundering, terrorist financing and proliferation financing (MLTFPF) risks to which the business is subject.

If you identify any MLTFPF risks, you should consider requesting information and documents from the business and determine if a sanction is appropriate if these risks have not been mitigated. Further guidance on determining an appropriate sanction is available in ECSH81075.