On 25 January 2023, the FCA published a new webpage setting out feedback on good and poor quality applications under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). The feedback is intended to help applicants when they prepare their application for registration.

The webpage covers:

• Before preparing an application –
  • Review the MLRs
  • Establish if the applicant will be carrying out in-scope cryptoasset activity
  • Consider seeking independent legal/compliance advice
  • Review the information on FCA webpages and the registration form
  • Appoint a Money Laundering Reporting Officer

• When preparing an application –
  • Business plan
  • Comprehensive description of products and services
  • Risk assessment and management
  • Policies, systems and controls
  • Transaction monitoring and blockchain analysis coverage
  • Group structure and reliance on group policies and procedures
  • Outsourcing
  • Training
  • Suspicious activity reporting
  • Disclosures
  • Applicant is already authorised for other activities
  • Sanctions
  • Website

• When submitting an application –
  • Have you included everything? This includes that the FCA expects all documents to be final versions that have been reviewed thoroughly and signed off before submission. The FCA will not review and comment on draft documents as part of its application assessment
  • Do you meet the standards for registration? The application must demonstrate that the applicant understands its obligations to comply with the requirements of the MLRs and is ready, willing and organised to meet these requirements when they apply

• While the FCA is assessing the application –
  • Keep the FCA up to date
  • Keep up to date with the evolving regulatory framework
  • Do not – applicants must not use their application to promote their products or services and applicants’ websites and marketing material must not include language that gives the impression that making an application for registration is a form of endorsement or recommendation by the FCA
  • This is the start – being registered is not a one-off formality or a tick-box exercise without any further obligations or interaction with the FCA