ECSH52775 - Accountancy service providers (ASPs) providing Trust or company service providers (TCSPs) or other supervised sector services - What would you expect to see

Accountancy Service Providers (ASPs) providing Trust or Company Services or other supervised sector services - compliance visit overview

It is not unusual for an ASP to provide an ancillary service which would fall within the definition of services provided by a Trust or Company Service Provider (TCSP). In such cases the business is acting as both an ASP and a TCSP and its Anti-Money Laundering (AML) registration must reflect this, as must its compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer)  Regulations 2017 (MLR 2017) – including the requirement for being fit and proper tested to delivering those services. Providing TCSP services before an application for registration has been determined, which includes being fit and proper tested is a criminal offence.   

You should also refer to the sections of the Handbook relevant to TCSPs where an ASP is conducting relevant TCSP activity at ECSH52000 - Trust or company service providers

The TCSP services commonly offered by an ASP include providing a registered office address.  This service enables the ASP to deal with their customers’ formal communications from HMRC and/or Companies House, and make sure their customers meet their obligations to file confirmation statements, tax returns etc. Generally, the TCSP will not receive commercial correspondence on behalf of their customer, with regards to their customer’s trading activities.

An ASP might also act as TCSP by forming firms for an existing customer or providing a standalone company formation service to new customers wishing to set up or incorporate their business.

There are also ASP businesses that conduct other relevant activity under the MLRs including (but not limited to) some Estate Agency Businesses (EABs) and a small number of Money Service Businesses (MSBs) where their business model includes ASP activity.

In all cases the business's registration for AML supervision must describe all of the relevant activity it conducts, and it must adhere to all of its obligations under the MLR 2017.

At a compliance visit, an officer should seek to understand all ASP and TCSP services (relevant activity) conducted by the ASP/TCSP, how the ASP/TCSP has risk assessed each service alone and in combination, and how it manages andmitigates those risks.

Record testing should span all of the ASP and TCSP services provided. For example, where an ASP provides bookkeeping, payroll services, and firm formations, records should be selected where bookkeeping services have been provided, where payroll services have been provided, where firm formations have been provided and where combinations of those services have been provided together.

Where the ASP/TCSP also carries out relevant activity in another supervised sector, an officer should seek to understand the business’s compliance with the MLR 2017 in respect of that additional sector(s). Record testing should span all sectors of relevant services provided by the business, including where provided in combination.

General money laundering, terrorist financing and proliferation financing risks for ASPs can be found at ECSH52625 - General MLR risks in the ASP sector and General risks for TCSPs can be found at ECSH52125 - General MLR risks in the TCSP sector . At a compliance visit, ASPs providing TCSP services should be expected to provide an explanation for any departure from published guidance.

You should also refer to the section of the Handbook relevant to ASPs who are multiple-service providers at ECSH52750 - Multi-service provider - What would you expect to see.

You should also refer to the sections of the Handbook relevant to any other sector where the business is conducting relevant activity at ECSH50000 - Business sectors supervised by HMRC.