Money laundering supervision fees

From 1 May 2019, HMRC’s money laundering supervision registration and annual renewal fee will increase to £300 per premises. Businesses with a turnover below £5,000 will be able to apply for a reduced ‘small business’ fee of £180. The fit and proper persons test fee will increase to £150.

HMRC consulted during August and September 2018 on changes to the fee structure and published its decisions in a response document on 4 April. The consultation had asked for views on three main options:

• retaining the current structure, with an increased fee;
• use a small, flat fee, plus a percentage of the businesses turnover; or
• a per premises fee escalating with the number of premises.

Also considered were:

• late renewal charge;
• fit and proper persons re-test fee every five years.

In order to keep the fee structure as simple as possible, HMRC has decided to remove the one-off application charge of £100 currently payable on first registration with effect from January 2020. It will not introduce a fit and proper re-test fee.

While responses indicated broad support for a late renewal charge, HMRC will consider how it can put appropriate safeguards in place before introducing such a charge.

New applications received on or after 1 May 2019 will be processed under the new structure. The current structure will apply to new applications received before 1 May 2019.

After 1 May 2019, businesses with a turnover below £5,000 can apply for the ‘small business’ reduction by contacting HMRC after payment of their renewal fee, stating their:

• anti-money laundering supervision registration number;
• previous year’s turnover (if trading for more than 12 months);
• anticipated turnover (if a new business).

HMRC will aim to process refunds within 30 days of approval.