The Money Laundering Regulations (MLR) 2017 apply to a wide range of persons acting in the course of business, for example, financial institutions, accountancy practitioners, estate agents and independent legal professionals.
Every business covered by the regulations must be supervised by a supervisory authority. If your firm is a CILEx Authorised Entity, then your business will be supervised by CILEx Regulation.
Businesses carrying out AML-regulated activities must be supervised by an appropriate supervisory authority before undertaking regulated work. Operating without the required supervision may result in regulatory or enforcement action
Depending on your firm’s annual revenue, you may be required to pay the Economic Crime Levy (ECL). For further information on eligibility, reporting requirements and payment obligations, please visit our Anti-Money Laundering page
If you run a firm in your own name as a sole trader and the services you provide fall within the scope of the Money Laundering Regulations 2017, CILEx Regulation may be able to supervise your business for anti-money laundering compliance.
To discuss eligibility, the application process and the fees applicable at the time of application, please contact CILEx Regulation.
If your business operates as a Trust or Company Service Provider (TCSP), you may find it more appropriate to register with HM Revenue & Customs (HMRC) for AML supervision.
Do I need to be supervised for compliance with the MLR 2017?
Are you operating as a CILEx Authorised Entity?
Yes: Your firm is automatically supervised by CILEx Regulation.
No: You should check your compliance against the other categories below. If you are an individual working in a firm, you should check who the firm is supervised by.
Are you running your business as a sole trader?
Yes: If you are:
(a) operating as a Trust & Company Service Provider (Setting up new companies, acting as trustee);
OR
(b) holding client money and/or carrying out financial transactions for your clients;
OR
(c) acting as a tax adviser by providing material aid or assistance or advice related to tax affairs of other persons,
then you will need to be supervised for compliance with the Money Laundering Regulations 2017. Contact CILEx Regulation or HMRC.
If neither (a), (b) nor (c) applies to you, you may not need to be supervised for AML compliance but should check against the Money Laundering Regulations 2017.
No: You should check your compliance against the other categories. If you are an individual working in a firm, you should check who the firm is supervised by.
Are you running your business as a corporate entity (Ltd Co or LLP)?
Yes: If you are:
(a) operating as a Trust & Company Service Provider (Setting up new companies, acting as trustee);
OR
(b) holding client money and/or carrying out financial transactions for your clients;
OR
(c) acting as a tax adviser by providing material aid or assistance or advice related to tax affairs of other persons,
then you will need to be supervised for compliance with the Money Laundering Regulations 2017. As your firm is not a CILEx member, we suggest you contact HMRC to discuss how you can comply.
If neither (a), (b) nor (c) applies to you, you may not need to be supervised for AML compliance but should check against the Money Laundering Regulations 2017.
No: You may not need to be supervised for AML but should check against the Money laundering Regulations 2017.
Are you an individual working in a firm?
If you are an individual working in a firm and you believe that your activities fall under those described in the Money Laundering Regulation 2017, then you should check with the firm who you are supervised by.
