It is the process by which criminally obtained money, or other assets, are exchanged for "clean" money or other assets, with no obvious link to their origins.  It also covers money, however come by, which is used to fund terrorism.

Money can be laundered through innocent businesses and the regime will help you defend yourself against money launderers and against charges of money laundering.

What is a High Value Dealer?

Any business that deals in goods of any nature and accepts in cash the equivalent of €15,000 (In order to avoid exchange rate issues, HMCE recommend you work on a sterling limit of £9,000) or more for any single transaction.   Failure to register could lead to a civil penalty.  If you run more than one business, each must be separately registered.   A small business with low turnover (less than £15,000) that sells a car for more than £9,000 in cash will become a High Value Dealer. 

I am a High Value Dealer

You should have registered by 1 April 2004 to avoid a fine.  This registration is completely outside the scope of VAT.  There is an annual registration fee, payable on application and renewal, currently set at £60.00, although this is subject to change on renewals.  If a business has different trading names, you do not need to register each name, just the main business.   Registration may result in a visit from Customs and Excise to ensure you have adequate procedures in place.

I am not a High Value Dealer

You must be able to produce evidence to support your money laundering procedures that clearly indicates that sufficient procedures are in place and that you categorically never receive cash over the £9,000 limit.  This may be available in documents such as training manuals, minutes of board meetings, advertising or contracts.

I don't know if I am a High Value Dealer

If you are unsure, you should register.  If you don't register you must refuse any cash offers.  If you do accept cash offers and a subsequent investigation under covers this, you will be prosecuted.   under current legislation, investigations can go back five years.

Can I deregister as a High Value Dealer?

Yes, but you will need to apply and satisfy the deregistration criteria.

What Anti Money Laundering steps should I take?

The Money Laundering Regulations 2003 impose conditions on the financial sector including banks, building societies, insurance companies, casinos, estate agents, accountants, lawyers and any business that is a High Value Dealer.    There are five main elements to the Regulations, known as CATCH.

Confirm the identity of your customers

Appoint a Money Laundering Reporting Officer

Train your staff

Control your business with anti money laundering systems

Hold records for at least five years

Recommended reading;

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Anti money laundering guide

Registration guide for High Value Dealers

Application Form to register as a High Value Dealer

Partnership Details Form