High value dealers and money laundering regulations

Money Exchange software with KYC

Money laundering is a term used to define the action of changing money that has been gained through an illegal act. For example, if an individual was to travel to Spain and win money through a bull fight then this money was gained through illegal means according to UK law. If the person was to spend this money back in the UK they would therefore be money laundering.

In recent times the amount of money being laundered worldwide runs into the billions each year. This has stirred up a lot of concern amongst many Governments and regulations are currently in place to help deter anyone who may be tempted to commit the offence.

 

The HMRC considers you to be a high value dealer if you accept any of the following:

  • a single cash payment of 15,000 Euros or more
  • several cash payments totalling 15,000 Euros or more, including a series of payments and payments on account
  • cash paid by a customer totalling 15,000 Euros or more in any 90 day period
  • cash payments totalling 15,000 Euros or more which appear to have been broken down into smaller amounts to come below the High Value Payment limit

If you are a High Value Dealer, then your business will need to be registered with the HMRC Revenue and Customs Money Laundering Regulations.

 

The following are the types of businesses that need to be monitored by a supervisory authority:

  • most UK financial and credit businesses such as currency exchange office, cheque cashers or money transmitters
  • independent legal professionals
  • accountants, tax advisers, auditors and insolvency practitioners
  • estate agents
  • casinos
  • High Value Dealers

Your business does not necessarily need to be monitored by HM Revenue and Customs as there are other supervisory authorities that can carry out the task. There are also designate d professional bodies that act as supervisory authorities. A full list can be obtained from HM Revenue and Customs.

Some businesses will need to register with both the FCA and HMRC. This applies to Money Service Businesses who also do money transmissions. Through the Financial Conduct Authority the business would be required to register under the Payment Services Regulations 2009.

If you think you may be classed as a High Value Dealer then it is extremely important that you complete all the relevant registration prior to accepting any payments otherwise you could find yourself facing a hefty fine for failing to do so.

We work with people and businesses or deal money on a daily basis. We have our state of the art money exchange software called Money Exchanger. Enquire today for details.

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