ECSH34025 - What if nothing is wrong

After you have concluded your check of the business’s compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) and you have not identified any areas of non-compliance, you must consider the most appropriate outcome as detailed in the guidance below.

For guidance on how to write and address outcome letters, see ECSH34030 issue outcome letter. You must use the latest letter templates in the knowledge library to draft your outcome letter.

Compliance outcomes

You will need to complete a Decision and Evidence Log (DEL), then have both the letter and DEL signed off by your line manager – See ECSH32535 before the letter can be issued to the business. This applies to all outcomes.

Closure letter

A closure letter may be appropriate if you have conducted your compliance check and have found the business to be compliant. This means that you have not identified any breaches and have no advice to give for areas of improvement. A closure letter indicates that the business is compliant with MLR 2017.

You must not prejudice any potential future compliance checks into other aspects of compliance at this point in time. You should make it clear that your conclusion is based on the records reviewed and this should not be taken as acceptance that a similar level of compliance will be demonstrated in the future.

The closure letter and notes of meeting  can be issued together without the requirement for the business to provide comments.

Advice letter

As per the technical guidance, an advice letter is only appropriate in cases where there are no breaches of MLR 2017, but practices, if continued by the business, could lead to future breaches.

An advice letter may be appropriate to confirm verbal advice you provided to the business during your check. Where appropriate, businesses should be directed to the appropriate pages on GOV.UK where they can view guidance.

The advice letter and notes of meeting can be issued together without the requirement for the business to provide comments.

You must not issue a closure letter or an advice letter for any other outcomes.

 

Authorisations outcomes

Approving registration (Approvals sectors)

For full details of the approval process see the Standard Work Instructions (SWIs) in the ECS Knowledge Library under the heading 2900 SWI.

Determining fit and proper (money service businesses and trust or company service providers)

When a new registration or annual declaration is approved by authorisations, the business is automatically issued a secure communication to its government gateway account. The secure communication informs the business that its registration has been approved and advises that it must submit its annual declaration in the future.

Authorisations caseworkers should issue a Fit and Proper (F&P) determination letter to all Beneficial Owners, Officers, and Managers (BOOMs) who have passed the F&P test.

For full details of the approval process see the Standard Work Instructions (SWIs) in the ECS Knowledge Library under the heading 2900 SWI.