Money laundering regulations mean high value dealers must register

High Value Dealers (HVDs) are businesses who deal in goods and accept single cash payments of around £ 10,000 and over.

New regulations brought in after the Second EU Money Laundering Directive was extended to all EU member states in 2001, means that HVDs must now register with Customs.

The financial sector and Money Service Businesses (MSBs) have been subject to money laundering regulations for a number of years, but this is the first time controls have been extended to HVDs. Customs has been given responsibility for controlling MSBs and HVDs.

From this month, a business which intends to accept payments equivalent to 15,000 Euros (approx £ 10,000) for a single transaction must register with Customs.

If a business does not register with Customs and subsequently accepts such a payment then it must contact Customs and register. Failure to comply with the new regulations may result in a civil penalty of up to £ 5,000.

This new regime is likely to affect:

· agents and auctioneers

· goods sold over the internet

· sale of cars, yachts, planes

· sale of artwork, jewellery and antiques

If a business is already trading as an HVD it must register by 31 st March 2004 by completing a MLR100 form.

Businesses which begin trading after 1 st April 2004 must register immediately trading begins.

Registration is done by entity but applies to each business premises. An annual fee of £ 60 per premises is due to Customs.

For further information please contact Alison Horner, Director of VAT Services at MacIntyre Hudson:

T: 01234 268761

E: alison.horner@macintyrehudson.co.uk .