ECSH41530 - Verifying Financial Conduct Authority (FCA) registration:

Money Service Businesses (MSBs) that provide money transmission services must be registered with HMRC in accordance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017(MLR 2017) and authorised by the Financial Conduct Authority (FCA) under the Payment Service Regulations 2017 (PSRs).

Process for new registrations

A MSB registering to provide money transmission services must first apply for authorisation with the FCA before it submits its application to register with HMRC. During the FCA’s application process, they will give the MSB a Firm Registration Number (FRN).

The MSB must provide the FRN to HMRC when submitting its application for anti-money laundering registration. The MSB will not be added to the FCA’s financial services register unless HMRC approves its registration.

Due to the number of businesses on the FCA register, new FRNs are now seven digits long. HMRC’s online application system was programmed to accept FRNs that are exclusively six digits in length. HMRC’s online application form has been updated to advise businesses that HMRC will contact them to request this information as part of the registration process.

Existing registrations

You should search the FCA’s financial services register to confirm that the business has been authorised as a payment institution. If you cannot confirm that the business has FCA authorisation you should contact the business to request evidence of its application to the FCA.

If you identify that the FCA has withdrawn a business’ FRN and the business has not notified HMRC while continuing to offer these services, you should consider the guidance in available in ECSH81075 to determine an appropriate sanction.