General information update from IM Financial Services Limited.

For all businesses who hold a Consumer Credit Licence (CCL) and are not regulated by the Financial Services Authority, they will become regulated for Anti-Money laundering purposes by the OFT.  The OFT launched registration on 31 July 2009 and businesses they supervise must be on the OFT register within six months of the start of registration; that is by the end of January 2010. 

The link below takes you to the relevant page to begin registration:

http://www.oft.gov.uk/advice_and_resources/resource_base/legal/money-laundering/guidance

The OFT has 45 days to complete the registration process starting on receipt of an application. The experience of other Anti Money Laundering (AML) supervisors has been that the majority of businesses apply in the last few weeks of the registration period. They are therefore recommending that businesses do not leave the application process until the end of the period – and certainly not less than 45 days before the end of January 2010. They are suggesting that businesses apply for registration no later than the end of November 2009 to avoid being caught in the predicted peak of registration applications which is preceded by the Christmas 2009 period.

The OFT recognises the difficult circumstances in which businesses are currently trading, but their AML supervisory work has to be self-funding. They say that they have tried to keep their costs, and the fee, to a minimum and to minimise the information they are asking businesses to supply. Their fees for 2009/10 to be paid for registration have been set at £115 per premises with:

• a minimum fee of £115, for those firms who have no premises
• a maximum fee of £300 - equivalent to a firm with 20 premises

After the initial registration period all new OFT supervised businesses must register before carrying on a relevant business. Businesses will not be required to renew their registration annually but the OFT will be seeking annual fees to support their supervisory role. Fees for 2010/11 onwards will be decided following a formal public consultation later in the year on their proposed fees and future supervisory approach. The registration fee covers some supervisory costs and the costs of setting up the registration system which they regard as essential to an effective supervisory framework.

From 31 January 2010 it will be an offence for a business to carry on its business without being registered. Failure to register could lead to the OFT imposing a civil penalty or taking a prosecution if business is carried on after that date. Prosecution could result in a sentence of up to two years in prison and/or an unlimited fine.

If you have any queries on registration or the regime you can email the OFT at amld3@oft.gsi.gov.uk or ring their enquiries telephone line on 020 7211 8200.