TCSP services/HMRC TCSP register
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) require all businesses acting as trust or company service providers (TCSPs) in the UK to be registered with HMRC where they are not already registered with the Financial Conduct Authority (FCA).
Firms that are not on the TCSP register are not permitted, under the MLR 2017 to provide TCSP work.
MLR 2017 requirements
Under the MLR a trust or company service provider is any firm or sole practitioner whose business is to:
- form companies or other legal persons
- provide a registered office, business address, correspondence address, administrative address for a company, partnership, other legal person or arrangement
- act or arrange for another person to act as a:
- director or secretary of a company
- partner (or in a similar position) for other legal persons
- trustee of an express trust or similar legal arrangement
- nominee shareholder for another person, unless the other person is a company listed on a regulated market which is subject to acceptable disclosure requirements.
A person is still considered to be a TCSP provider even if these services are provided incidentally to other accountancy services, or they are provided infrequently or on a one-off basis.
HMRCs TCSP registration guidance provides further information about what constitutes a TCSP.
HMRC’s TCSP register
In order to maintain the TCSP register, HMRC has requested the IFA (along with the other professional body supervisors) to notify HMRC of all the firms that we supervise that perform TCSP work.
We will be adding relevant firm details to HMRC’s TCSP register based on your firm return information. The details on the register include:
- the name of your firm or your name if you are a sole proprietor
- the registered address of your firm
- confirmation by the IFA that the beneficial owners, officers and managers are fit and proper.
Access to the TCSP register
The TCSP register will be made accessible to law enforcement agencies on request and to the extent permitted by the regulations. Details from the TCSP register may also be given in response to requests from other UK or overseas supervisors or other authorities to the extent permitted under the MLRs.
HMRC has no plans to publish the TCSP register, and there are no actions that you need to take.
Penalties for non-compliance
If a firm provides TCSP work and it is not on the TCSP register, the firm is breaching the MLR 2017 and action may be taken by HMRC, the IFA or both. Penalties for breaching the regulations include HMRC criminal and civil penalties as well as disciplinary action by the IFA.
Changes to your firm details or services provided
You must notify the IFA immediately by email email@example.com of the following changes in order that the IFA can update HMRC’S TCSP register.
Changes to the name of your firm or your name if you are a sole proprietor, the registered address of your firm or changes in beneficial owners, officers and managers must communicated to us. If there are changes to beneficial owners, officers and managers, we will need to confirm to HRMC that they are fit and proper. We will provide further guidance on this upon notification.
If you do not undertake any TCSP activity, and do not have any plans to undertake TCSP activity in the future, then you should notify us to have your business removed from the TCSP register.
However, if you later wish to undertake TCSP activity you will need to notify us and wait until we have registered your business with HMRC before undertaking TCSP activity.
If you are not sure whether or not your business will undertake TCSP activity in the future, you may remain registered with HMRC so that you can legally perform TCSP activity if and when you decide to do so.
Further information on this is available via FAQ which have been developed with HMRC ( link to FAQs)