ECSH41535 - Instances where the Financial Conduct Authority (FCA) will become sole supervisor of Money Service Businesses (MSBs)

MSBs that provide money transmission services have to 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 the FCA under the Payment Service Regulations 2017. If the MSB provides services regulated by the FCA, for example as an Electronic Money (E-Money) institution, the FCA may accept sole supervision of the business.

When you identify that an MSB provides money transmission services, you should search the FCA’s financial services register to confirm its registration status. If the business has an existing FCA registration, you should check its “firm status” to establish the type of registration that the business holds with the FCA as well as its “payment services/electronic money status”. If the business is registered with the FCA as an authorised E-Money institution, you should advise the FCA to request that they will accept sole supervision of the MSB.

You should email the Economic Crime-Supervision information gateway who will escalate the query to the FCA. If the FCA provide confirmation that it will accept sole supervision of the MSB, the business should be asked  to de-register or withdraw its application for anti-money laundering supervision with HMRC.