MLR3C2066 - Legislation: Checking MSBs compliance with the MLRs 2017

If the business carries out Annex 1 financial activities, you should check that the business is not authorised by FCA. If the legal entity carrying out the Annex 1 financial activities is an FCA authorised business we will not supervise them for any Annex 1 financial activities or any money service business.

If you are satisfied that the business has correctly registered with HMRC, you should assess the risk posed by these Annex 1 financial activities as well as the MSB activities when identifying risk and checking or testing of the MSB’s systems, either desk based or by means of a visit, to ensure that resources are focused on areas of risk.

You must make sure that all the Annex 1 financial activities are:

• included in the business’s risk assessment of its products services and customers and

• covered by their anti-money laundering systems and processes