ECSH42625 - Public bodies and authorities

Public bodies/authorities include, but are not limited to:  

  • government departments e.g., Department for education
  • non-departmental public bodies e.g., British Council
  • local government bodies e.g., Local Councils
  • NHS bodies e.g. NHS Trusts 

Whilst public bodies/authorities are not directly covered by the requirements of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017), some activities undertaken by them could be included within the scope of MLR 2017. 

Our registration guidance on GOV.UK provides a list of the types of public bodies that do not have to register with HMRC. These are:

  • Public authorities serving members of the public for free, or that charge a fee to cover no more than the expense of providing the service only.
  • Public authorities that provide these services as part of their statutory duties where a fee is charged. 
  • Public authorities funded by the Exchequer or council taxpayers, and not by the person receiving the service.
  • Public authorities or joint ventures (where 50% or more of the shares are owned by the public body) that provide services only to other public authorities.
  • Public authorities or joint ventures (as defined above) that provide services to a firm authorised by a public authority to act on their behalf, such as a housing association. 

These services may not within scope of the MLR 2017 if the activities are not carried out by way of business. Some activities undertaken by public bodies (for example certain accountancy and property transactions) may be carried out by way of business and therefore, the MLR 2017 may apply. Officers will need to check the basis of the provision of the services to determine if the public body is within scope of MLR 2017.

Where the public body is carrying out relevant activities in the course of business, it is in scope of MLR 2017, therefore the public body should comply with MLR 2017 and put in place appropriate policies, controls and procedures.