ECSH51300 - Money service business fit and proper testing

Money service businesses (MSBs) are subject to the fit and proper (F&P) test to ensure the business is suitable to carry out activities within the MSB supervised business sector. The beneficial owners, officers & managers (BOOMs) of the MSBs are also subject to the F&P test to ensure they are suitable people to undertake those roles.

MSBs must not carry out regulated activity until they have passed the F&P test and all of the MBS’s BOOMs must pass the F&P test before they carry out their role.

The test is undertaken as part of the initial registration process but being fit and proper is an ongoing requirement. This means that F&P test results can be reviewed by HMRC at any time, but particularly where there has been a material change to the information relevant to the F&P test. Any BOOM that is appointed after registration must pass the F&P test before they can carry out their role.

Further information on F&P testing can be found here.