Duties of high value dealers under money laundering law

Businesses that are prepared to accept high value payments of at least €15,000 (or the equivalent in any currency) in cash for goods are classified under money laundering law as high value dealers .

Typically these businesses will deal in high value luxury goods such as works of art, cars, jewellery and yachts. However this regime does apply to any business that accepts large amounts of cash for goods therefore all businesses whose sales command a sufficiently high price are compelled to register.

Since 2004, these firms have been required to register with HMRC as part of the Government's attempts to prevent money laundering of the proceeds of crime.

Equally important is the requirement for those firms to put anti-money laundering systems in place. This is to enable those high value dealers to identify and prevent money laundering.

Linked to this is the requirement for these firms to report suspicious activities

Many of the firms that are affected by this requirement will be those that deal in high value goods, such as art and jewellery, but all businesses whose goods sales command a sufficiently high price are compelled to register, even if such transactions are rare. Firms that do not register may not take cash payments above €15,000 for goods, but may take payment by other methods.

Registration carries an initial cost and an annual registration fee based on the number of premises that the high value dealer trades through, the value of which is reviewed by HMRC annually and failure to register carries a financial penalty.

In summary, the anti-money laundering requirements that now apply to high value dealers are as follows:

• ensure anti-money laundering systems are in place;


• provide appropriate money laundering training for all relevant employees;


• introduce and follow customer due diligence ('know your client') procedures or procedures for identifying customers;


• retain records of transactions for at least 5 years; and


• appoint a Money Laundering Reporting Officer.

The Money Laundering Reporting Officer should be a senior person within the high value dealer with the responsibility to ensure that relevant systems, procedures and training are in place, to maintain records relating to high value payments and to manage the process of reporting to the Serious Organised Crime Agency when the systems in place show potentially suspicious activity.

The helpsheet issued by HMRC for high value dealers includes a list of potential 'triggers' that may cause suspicion, such as payment in used or small-denomination notes, customers failing to give prior warning that they wish to pay in cash, and unusual or unjustified requests for refunds, particularly where the refund is requested as a cheque after a cash payment.

It is, therefore, clear that the onerous duties imposed upon businesses under money laundering law are not simply restricted to law firms, financial institutions and similar organisations.

Money laundering training for compliant business
ML Solutions 4U is a firm that specialises in helping businesses comply with the duties imposed upon them by the Money Laundering Regulations 2007 and related legislation. Its accredited courses can be tailored to meet the needs of Regulated firms from all sectors, and delivered in methods that suit the company best, whether through anti-money laundering seminars, in-house workshops, or online learning packages.

ML Solutions 4U offers anti-money laundering compliance programmes designed to suit the individual organisation and can also assist by providing outsourcing services where resources are limited and an ongoing Helpline service.

To discuss the ways in which ML Solutions 4U can help meet your firm's requirements under money laundering law, please telephone an advisor on 0845 402 0001, or complete our online enquiry form and a representative will contact you.

Money Laundering Information » Money Laundering Law for HDV's