New rules for virtual offices in London

From October the 1st 2007 London Councils will be able to require mail forwarding services to register with them.

The new rules, contained in the London Local Authorites Act 2007 are intended to reduce the risk of money-laundering and to make it easier to catch rogue traders.

Anyone operating a mail forwarding service (which includes holding post for collection) will be required to keep a record of :-

• The full name and address of the customer
• The nature of the customer's business
• Any instructions about forwarding the items, including
• Any name and address other than that of the customer to which items are sent

They will also be required to obtain and keep copies of two acceptable identity documents supplied by the customer.

In addition the customer's address must not be another mail forwarding service and should be: -
in the case of a sole trader, his private address;
and in the case of a business or corporation the registered office, the main trading address if different, and the name and address of a responsible officer or director.

These records must be kept for up to one year after the end of the service and failing to keep records or supplying false information can lead to fines up to level 5 on the standard scale (currently £5000).

The new regime is to begin on a day appointed by the Council, however it is expected that most London Boroughs will implement it at the earliest possible date. The defintion of a mail forwarding serivice relates to the holding or forwarding of postal packets as defined in section 125 of the Postal Services Act 2000, but does not apply to anyone licensed for postal services under part 2 of that Act.