ECSH47005 - Introduction: incorrect information on the register

Introduction: incorrect information on the register

Where a relevant person (business) provides information as part of their application for registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), regulation 57(1),  or in response to a request issued by HMRC under regulation 57(3) MLR 2017, the information provided must be accurate at the time of submission.

Regulation 57(4) MLR 2017 places an obligation on the business to update HMRC with any material changes of the information provided under regulation 57(1) and/or regulation 57(3) MLR 2017 as part of their application, whether before or after the business is registered, within the specified time limit of 30 days (unless an alternative date has been agreed with HMRC).  HMRC considers that any changes to the information provided under regulations 57(1) and (3) MLR 2017 would be material changes and therefore HMRC must be notified of the changes.

Occasionally the information provided may contain an inaccuracy. When the business discovers this, either themselves or when notified by HMRC, they have an obligation to correct the inaccuracy within the specified time limit.

Failure to fulfil regulation 57(1) and 57(4) MLR 2017 obligations within the specified time limit could result in sanctions against the business.

If the business deliberately fails to update a material change or it deliberately provides information, it knows to be wrong, the business is providing false or misleading information, which is a criminal offence.  Providing false or misleading information are grounds under which HMRC may refuse to the register the businesses or, if the business is already registered, may cancel or suspend its registration.