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Chapter MLR3C17050

Document Cited in Related
Vincent
Published date26 April 2016
Record NumberMLR3C17050
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

Our view of the registration requirements as they apply to Money Service Businesses in an Agent/Principal relationship was confirmed in the Tribunal decision in the case of Moneygram Payment Services Inc v Commissioners of HMRC.

In essence we do not accept the idea of “arms length” agents. Registration depends on the contractual arrangements between the customer, the “agent” and the “principal”.

This means that where a principal provides services to customers through an agent, the principal must apply to register all the agent’s premises and pay a fee for each one. If the agent only provides services on behalf of a principal there is no need for the agent to register separately. If however, an agent that is included in the registration of its principal also conducts business that is not carried out on behalf of the principal, it is necessary for the agent to register for the separate MSB services that it provides.

Generally therefore where a business arranges to supply its services to the public via another business an agent/principal arrangement will be in place. The principal must register and include in its list of premises any agents premises that they supply their services through...

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