CIOT Anti-Money Laundering Scheme Rules

These rules are effective from 1 November 2025. Please refer to the link at the end of this page for AML Scheme Rules up to 31 October 2025.

MONEY LAUNDERING REGULATIONS 2017: REGISTRATION, MONITORING AND COMPLIANCE SCHEME

CONTENTS

1.Preamble

2.Definitions and interpretation

3.Registration

4.Publication of Register and exchange of information

5.Rights and obligations

6.Discipline

7.Making and amendment of scheme

1. Preamble

1.1 The Institute is designated as a supervisory authority for the purpose of regulation 7 of the Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ("the 2017 Regulations"). Under the 2017 Regulations, the Institute must effectively monitor those for whom it is the supervisory authority and take necessary measures for the purpose of securing compliance by such persons with the requirements of the regulations.

1.2 If the Institute, in the course of carrying out its functions under the 2017 Regulations, knows or suspects that a person has or is engaged in money laundering or terrorist financing, it must promptly inform the National Crime Agency.

1.3 Under the 2017 Regulations, the Institute must collect such information as it considers necessary for the purpose of performing its supervisory functions, including all of the information in Schedule 4 of the 2017 Regulations. The information collected by the Institute will be kept in a register in such form as it sees fit. The Institute will make available to those that it supervises up-to-date information on anti-money laundering and counter-terrorist financing risks associated with tax work.

1.4 All relevant persons under the 2017 Regulations must be supervised by one authority but a relevant person may have more than one authority available to supervise them. This Scheme sets out the requirements for relevant persons who should register for supervision by the Institute and the system of compliance monitoring to which they are subject, once they are registered. Ordinarily members should register with the Institute but where more than one potential professional body supervisor is able to supervise, it is the responsibility of the professional bodies to agree between them which is the most appropriate supervisor. Under the 2017 Regulations the CIOT can only supervise those acting in the course of business in the UK.

1.5 Registration for supervision is open to sole practitioners who are a member of the Institute and firms of tax advisers which comprise at least one member of the Institute who is a principal within the firm. Any member of the Institute who, and any firm of tax advisers including members which, is not registered with the Institute and is in practice as a tax adviser (or providing other defined services requiring supervision) is expected to register with another authority under the 2017 Regulations. Any individual member not registering for this purpose with the Institute will be assumed to be either:

(a) a principal or employee of a firm registered with the Institute,

(b) a principal or employee of a firm registered with another authority under the 2017 Regulations,

(d) a principal or employee of a firm not required to be registered under the 2017 Regulations,

(e) in practice as a tax adviser outside the United Kingdom; or

(f) not in practice as a tax adviser or providing other defined services requiring AML supervision.

2. Definitions and interpretation

2.1 In the Scheme, unless the context otherwise requires, words used have the same meanings as in the Charter, Byelaws and Regulations of the Institute, and

“firm” includes a company, a partnership, and a limited liability partnership,

"Institute" means the Chartered Institute of Taxation,

"member" means a member of the Institute,

"principal" means a sole practitioner, equity partner in a partnership, member of a limited liability partnership or company director listed at Companies House of, a registered firm,

"register" means the register maintained under paragraph 4.1,

"registered firm" means a firm which is registered under the Scheme,

"registrant" means a member or firm registered under the Scheme,

“relevant person” means a person to whom, in accordance with regulation 8 of the 2017 Regulations, Parts 1 to 6 and 8 to 11 of those Regulations apply,

"the Scheme" means this Scheme,

“sole practitioner” means self-employed sole trader, consultant and subcontractor providing defined services whether working on a full time or part time basis.

“tax adviser” means a firm or sole practitioner who by way of business provides material aid, or assistance or advice, in connection with the tax affairs of other persons, whether provided directly or through a third party, when providing such services. For these purposes advice about the tax affairs of other persons means the preparation and submission of tax returns, advice on tax planning, representation and defence of taxpayers before authorities and courts and the provision of overall advice in the area of taxation and complementary accounting and legal services.

"TDB" means the committee system of the Taxation Disciplinary Scheme operated by The Taxation Disciplinary Board Limited, registered company number 4210063.

2.2 In the Scheme, the singular includes the plural, and references to any enactment are to that enactment as amended or replaced from time to time.

2.3 The Scheme shall be construed under the law of England and Wales, and registrants waive any right to seek to determine any matter arising under the Scheme or in connection with it in any alternative jurisdiction.

2.4 If any provision of the Scheme is held to be unlawful, this shall not invalidate or render unlawful any other provision of the Scheme.

3. Registration

3.1 Members who are sole practitioners and firms comprising members at least one of whom is an equity partner, member of an LLP or company director listed at Companies House, whose business includes the provision of tax advice to clients should apply for registration under the Scheme, using the form issued by the Institute for this purpose.

3.2 If a firm has not registered for supervision by the date they commence trading or the date their registration with another supervisor ceased, their registration is late. Late registrations will be charged the AML registration fees for the current supervision year plus up to six previous supervision years for which a firm should have been registered with the CIOT for supervision (if relevant).

3.3 In accordance with the 2017 Regulations the Institute is unable to supervise any sole practitioner or firm with a business owner, officer or manager with an unspent criminal conviction listed in Schedule 3 of these regulations. Where a firm is supervised by the Institute, the Institute is required to approve all of the firms’ beneficial owners, officers or managers. Approval is not valid where a person has been convicted of an offence listed in Schedule 3 and that conviction is unspent.

3.4 A registrant shall notify the Institute of any change in the details provided in the relevant application form within 14 days of the occurrence of the change.

4. Publication of Register and exchange of information

4.1 The Institute may maintain and publish a register of the names and business addresses of registrants under the Scheme.

4.2 The Institute may exchange information it collects in the course of exercising its supervisory function with any government or law enforcement agency or another supervisory or other authority listed in the 2017 Regulations. If information is shared, it will only be shared for law enforcement or supervisory purposes.

5. Rights and obligations

5.1 A registrant, while registered, may use the following wording on their practice stationery or website:

"Registered with the Chartered Institute of Taxation for the purposes of anti-money laundering legislation"

but registration under the Scheme shall not convey any other right or status.

5.2 A registrant may seek guidance or information from the Institute's anti-money laundering help-line, but acknowledges that the help-line cannot provide definitive legal advice.

5.3 A registrant will have available to them up-to-date information from the Institute on anti-money laundering and counter terrorist financing risks faced by tax advisers. The information will be provided from time to time in the form that the Institute sees fit.

5.4 A registrant must comply with the requirements of the Institute as set out in or issued in pursuance of the Scheme. In particular, a registrant must

(a) where a sole practitioner, obtain and disclose to the Institute a criminal history check in support of the application for registration;

(b) where a firm, obtain and disclose to the Institute a criminal history check for all beneficial owners, officers and managers in support of the application for registration and as soon as possible after notifying the Institute of any new business owners, officers and managers under 3.4 above;

(d) provide such other information as the Institute may request by the deadline requested by the Institute;

(e) pay the registration and annual renewal fee as determined from time to time by the Institute;

(f) respond to requests to arrange an AML review (inspection or visit) promptly and permit, and co-operate with, AML reviews (inspections or visits) by the Institute or its authorised representatives;

(g) deal with all action points arising from AML reviews or other supervisory activity within the time limits set by the Institute;

(h) retain copies of all Suspicious Activity Reports submitted to the National Crime Agency and the notes of matters considered for reporting even if no report has been made. Records must be retained securely.

(i) notify the Institute they

(i) wish to withdraw from the register on the grounds of falling within paragraph 1.5 (a) to (f) above, or

(ii) propose to wind up or are the subject of insolvency proceedings, or

(iii) otherwise cease to be liable to be supervised;

(j) conduct their practice in accordance with the laws of the Institute and in particular the Professional Rules and Practice Guidelines and Professional Conduct in Relation to Taxation applicable to members.

5.5 Registrants must comply where appropriate with their direct obligations under the 2017 Regulations and other relevant legislation and registration under the Scheme shall not reduce or qualify any such direct obligations.

5.6 A registrant is responsible for ensuring that all of its principals and staff, whether they are or are not members, comply, as appropriate, with the Scheme and any requirements of the 2017 Regulations.

6. Discipline

6.1 The Scheme is part of the laws of the Institute and a registrant who fails to comply with its terms is liable to disciplinary action under those laws. Where a registrant is alleged to have failed to comply with the Scheme they shall be fined or referred for action by the TDB, which may apply any appropriate sanction in accordance with its powers from time to time.

6.2 For the avoidance of doubt, late initial registrations will be considered for referral to the TDB, and late registrations of more than one year late shall automatically be referred for action by the TDB. Late renewal of supervision will be considered for a fine and then referral to the TDB where the fine is not paid. There is no appeal process in respect of fines, if a member disagrees with the fine or refuses to pay it they shall be referred to the TDB for further action.

6.3 For the avoidance of doubt, a registrant alleged to have failed to comply with paragraph 5.6 shall be liable to disciplinary action by or on behalf of the Institute, and it shall not be a defence that a failure of compliance was an act or omission of a principal or member of staff who is not a member.

6.4 A registrant may not withdraw, or apply to be removed, from, the register whilst they remain trading and are subject to disciplinary action under or in pursuance of paragraph 6.1.

7. Making and amendment of scheme

7.1 This scheme was first developed following the entry into force of the Money Laundering Regulations 2007. It was made by the Council of the Institute under Regulation 18A of the Institute's Consolidated Regulations on 27 September 2007 and came into force on 15 December 2007. A further amendment was made following the replacement of the Money Laundering Regulations 2007 with The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The scheme was updated under Regulation 53 of the Institute’s Members’ Regulations on 9 October 2018 and came into force on 12 November 2018. The current version has been reviewed and updated to ensure the scheme rules remain fit for purpose. It was approved at the CIOT Council meeting on 16 April 2025 and come into force on 1 November 2025. The scheme may be amended from time to time by the Council, provided that the Council shall give each registrant 28 days’ notice of the proposed amendment[s].

Downloads

Updated AML Scheme Rules - up to 31 October 2025

Updated AML Scheme Rules - 9 October 2018

AML Scheme Rules - 6 September 2007

Page last reviewed 3 October 2025