Trustees remain in the dark over HMRC money laundering guidelines

Jenna Towler


Pension scheme trustees have been "left in limbo" for four months over delayed money laundering regulations, a law firm says.

The new legislation – which came into force in April – requires those trustees who act "by way of business" to register with HM Revenue & Customs.

However, due to the way the legislation was worded, advisers could not be sure whether this applied to all paid trustees, or even whether trustees who had their expenses paid might have to register.

Pinsent Masons said that in March, HMRC admitted the position was unclear and agreed to put back the date for registration from April 1 to May 31. In May, HMRC had still not made up its mind or issued guidance on which trustees would be affected.

It announced that the requirement to register would not apply until four weeks after it had published updated guidance. That guidance has, as yet, failed to appear, even in draft form.

Senior pensions partner Alastair Meeks said: "Trustees have now been in limbo for four months, not knowing whether they will be required to register under legislation that is already in force.

"There may well also be many trustees who have registered under the rules who turn out to have wasted their time and money. What will happen to their registration fees if they've applied needlessly?"

Meeks – who is chairman of the Association of Pensions Lawyers – added: "How much longer will it take HMRC to decide what the words ‘by way of business’ mean? All those affected simply want some clarity on this matter."

Source: Professional Pensions