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Receiving payment in cash

AML supervision for a business

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A business has an outstanding debt for £20k. The debtor has offered payment in cash, can the business  accept this?

It looks as if they will have to register with HMRC for AML supervision since the value exceeds 10,000 Euros.

This is the only offer and an HMRC audit was mentioned by the debtor.

The business has processed the VAT etc correctly and just wants to be paid now but is concerned that if they say No to the cash they will lose £20k.

I am not involved, this is a local bookkeeper's client and a prospect.

Does anyone have any experience of a client registering for AML supervision and could this cash be recovered if there were insolvency procedures in place?

Lastly, assuming the client registers and submits an NCA report then does the bookkeeper or my firm also have to submit one?

https://www.gov.uk/guidance/money-laundering-regulations-register-with-hmrc

Thanks

Replies (14)

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RLI
By lionofludesch
26th Jan 2019 08:18

Here's another question......

Will the bank accept £20000 in cash when the creditor pays it in ?

Thanks (4)
RLI
By lionofludesch
26th Jan 2019 08:22

Reading the guidance on the link, I'm wondering how a business would know that a debtor had paid over €10000 directly into his bank account - in cash.

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By Matrix
26th Jan 2019 08:38

Yes the bookkeeper has already advised that they may have problems banking it.

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Replying to Matrix:
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By NH
30th Jan 2019 10:49

If that was the case why couldn't you pay it in over 2 or 3 days to keep each amount below 10k?

Thanks (1)
Replying to NH:
RLI
By lionofludesch
30th Jan 2019 11:06

Sure - the bank would never notice.

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By Wanderer
26th Jan 2019 09:37

Firstly is the payment for Goods or Services?

Secondly why based on the facts given is an NCA report required?

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Replying to Wanderer:
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By Matrix
26th Jan 2019 09:44

Services.

I asked since the business owner seems to think there is suspicious activity.

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Replying to Matrix:
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By Wanderer
26th Jan 2019 10:07

Matrix wrote:

Services.

Possibly no need for the business to register. See section 14 :-

http://www.legislation.gov.uk/uksi/2017/692/pdfs/uksi_20170692_en.pdf

Having said that there is probably (already)a requirement for you to report!

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Replying to Wanderer:
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By Matrix
26th Jan 2019 10:23

Thanks I will take a look. At the moment I don’t know the identity of the business or their debtor but could get the details from the bookkeeper.

Can the business owner accept the cash? And how would you handle this issue at a meeting with them? I am likely meeting this prospect in Feb but if they result in being £20k down already it won’t be a great start.

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By bernard michael
26th Jan 2019 10:26

Surely there's no need for an NCA report. The facts are known to the OP but not involving a client. So is gossip in the pub and you don't report that

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Replying to bernard michael:
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By Wanderer
26th Jan 2019 10:38

Being a client or not has no bearing on the requirement to report.

Thanks (1)
David Winch
By David Winch
26th Jan 2019 14:16

If it is a payment for services then receiving it does not make the recipient a 'high value dealer' (that relates to payments for goods, Reg 14(1)(a) MLR 2017).
The business can accept payment in cash for legitimate services rendered.
If, on the basis of information you have received in the course of your work in the regulated sector, you have a suspicion of money laundering (by anybody) then you have an obligation to report that suspicion.
Having said that, you do not give any information which leads to any such suspicion IMHO (but of course you may well have additional info which you have not posted on here).
David

Thanks (5)
By paddy55
30th Jan 2019 11:46

There used to be, and probably still is, a law stating what is legal tender for the payment of a debt.

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Replying to paddy55:
RLI
By lionofludesch
30th Jan 2019 12:04

Only if you're paying into court.

Coins only in Scotland and Northern Ireland. Bank notes not permitted.

I don't think the legislation's been updated since the Window Tax collectors came round to collect their money.

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