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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Here's another question......
Will the bank accept £20000 in cash when the creditor pays it in ?
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.
If that was the case why couldn't you pay it in over 2 or 3 days to keep each amount below 10k?
Firstly is the payment for Goods or Services?
Secondly why based on the facts given is an NCA report required?
Possibly no need for the business to register. See section 14 :-Services.
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!
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
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
There used to be, and probably still is, a law stating what is legal tender for the payment of a debt.
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.