ECSH42578 | Operational Guidance: Evidence required if a business advises that it is a voluntary organisation

Local community and voluntary groups, registered charities, foundations, trusts and other bodies established on a not-for-profit basis which carry out relevant activity that is free to the end user, are not within the 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’.

Volunteer advisers providing their services free to these organisations, and employees of these organisations, will also fall outside the scope of MLR 2017 when providing tax advice or accountancy services.

You may need to ask for evidence from the business that the relevant activity being carried out is not ‘by way of business’ if there is any doubt.

If a business is providing relevant activity on a voluntary basis, then it is out of scope of MLR 2017, and the business must sign in, using the sign in details they used when registering for anti-money laundering supervision, to withdraw its application.