ECSH42577 | Operational Guidance: Evidence required if a business advises that it is a charity

Services that are provided by some charities and public bodies are not within scope of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) because they are not carried out ‘by way of business:’ See ECSH42576.

Some charities have separate trading arms that are limited companies and may be in scope of MLR 2017.

A list of the types of charities and public sector bodies whose services aren’t carried out by way of business is available on the GOV.UK website.

You can verify if a business is a registered charity by checking the charity register.

If a business advises that it is a charity and the relevant activity carried out is not ‘by way of business, then it is out of scope of MLR 2017, and the business must sign in, using the sign in details it used when registering for anti-money laundering supervision, to withdraw its application.