Company Formation Agents and the UK Money Laundering Regulations
Money Laundering is the practice of converting the proceeds of crime into legitimate funds. The term is also used to cover other illegal activities e.g. financing terrorism, tax evasion and the avoidance of sanctions.As part of a global effort to stop these crimes, the UK enacted the Money Laundering Regulations of 2007. The Act regulates various UK financial institutions and business advisors, by making them responsible for knowing who their customers are. Regulated businesses must complete due diligence checks on their customers. Company Formation Agents are regulated by the MLR Act and fall under the category of “Trust or Company Service Providers”.
1stchoice Company Formations Ltd is part of a group of companies registered with HMRC for MLR activities. Our registration number is XFML00000128492.
- We are required to carry out due diligence checks on our customers when:
- We establish a business relationship, or
- Our customer makes an occasional or one-off transaction in excess of E15000.
- The one-off formation of a company does not trigger a due diligence check
- The provision of ongoing services, such as Registered Office does establish a business relationship.
- The provision of company secretarial services also establishes a business relationship.
- Where we are required to complete a due diligence check on a UK resident customer,we will:
- Check that customer’s details against the various databases that we subscribe to, and if that fails to satisfy us
- We will ask that customer to provide copies of scanned documents as set out in the attached schedule
- When a customer is a non-UK resident we will:
- Ask the customer to provide copies if scanned documents as set out in the attached schedule,
- Check those documents against the international databases that can verify their format and, sometimes, details.
- Where necessary, ask for translated documents and those translations and documents to be verified by notaries.
- We are not required to carry out these checks when a customer places an order. That would disrupt the order process.Section 9.3 MLR
- Customers ordering our registered office service will be checked immediately after the service is set up.