Money Laundering Regulations

Basic notes: If you accept large cash payments for goods, you must comply with new anti money laundering regulations from 2007.

The new rules apply if you deal in goods and accept payment in cash of 15,000 Euros (about £10,000) or more for any single transaction. Whenever this happens, you will have to ask your customer for evidence of their identity and keep a record of the evidence they supplied. The new rules affect you if you accept such large amounts in cash in any currency. But they do not apply to larger payments by other means such as a cheque or credit card.

And, if you have a clear policy of not accepting cash payments over the 15,000 limit for any single transaction, you are not affected by the new rules.

If you do intend to accept cash deals above the 15,000 Euros limit you must put in place procedures to counter money laundering with effect from Dec 2007. You must also register with Customs and Excise as a high value dealer (HVD). If you receive over 15,000 Euros get a copy of their passport, address and contact details, keep all copies of transactions and you must register your business

Questions and Answers

Q. Why have these new rules been introduced?

A. Banks and financial institutions have been subject to anti money laundering controls for some years. Extending these controls to large cash transactions will make it more difficult for criminals to profit from crime, and is an important part of the attack on organised crime and terrorism.

The UK rules have been agreed with our European partners, and are similar to those in force in other member states.

Q. What do I have to do as a high value dealer?

Control your business by having anti money laundering procedures in place. Appoint a nominated officer. Train your staff Confirm the identity of customers paying in cash above the limits. Hold all records for at least five years.

For further details go to the Customs and Excise website or phone the National Advice Service on +44 (0)845 010 9000