ECSH47075 - Material changes affecting information

Under regulation 57(4)(a) of the  Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017)  a business must provide details of any material change to information they have provided to HMRC under regulation 57(1) MLR 2017 when applying for registration or  in any information subsequently provided under regulation 57(3) MLR 2017.

Details of the change must be provided to HMRC within 30 days of the change occurring (or 14 days if the change relates to a new Nominated Officer, however this requirement falls under regulation 21(4) MLR 2017.  See below for more information on this). This change may occur before or after the registration is approved.

It is important to note that the business has an ongoing responsibility to report a material change to any of the information that the business provides to its supervisor as specified in regulation 57(1) and or 57(3) MLR 2017.

Examples of a material change

A material change is where information the business supplies to the supervisor as specified in regulation 57(1) and or 57(3) MLR 2017 changes. Examples of this could be:

  • When a beneficial owner, officer, or manager changes – this can include compliance officers appointed under accordance with regulation 21(1) MLR 2017.
  • The business starts operating from an additional branch.
  • The business changes its bank account.
  • Change of business premises address.

A material change is something that the business will be aware of. For example, the business is aware they have moved premises, so regulation 57(4) MLR 2017 obligates the business to update this information within 30 days of the change of address happening.

Multiple breaches

All changes to material information require notification and each are treated separately, even if they occur on the same day.

For example, if a business opens two new branches on the same day but fails to notify HMRC of both new branches within 30 days, then this occurrence constitutes two breaches of regulation 57(4) MLR 2017 not a single breach. The business is liable to be penalised for two breaches under regulation 57(4) MLR 2017.

Changes related to Nominated Officers

Although the notification of the Nominated Officer (and compliance officer depending upon the size and nature of the business) may be provided upon registration under regulation 57(1) MLR 2017, the relevant requirement to notify the appointment of, or changes to, Nominated Officers is within regulation 21 MLR 2017.

Regulation 21(3) MLR 2017 states that the business must appoint an individual to be the Nominated Officer and notify HMRC of that appointment within 14 days. Any subsequent changes to this appointment must be notified within 14 days in accordance with regulation 21(4) MLR 2017.

Therefore regulation 57(4) MLR 2017 does not apply where the notification relates to a Nominated Officer.

Sanctions

If a business has failed to update a material change within the 30-days of the occurrence, then the appropriate sanction(s) can be considered.

However, if the business has provided false and misleading information in their material particulars then please see guidance at ECSH47125.