HMRC highlights changes to the supervision process for ‘high value dealers’.
New guidance states that HMRC supervises high value dealers and a business ‘must not make or accept high value payments unless it is registered with HMRC’. It also stresses that a business ‘must inform HMRC of the names of the compliance and nominated officers within 14 days of the appointment and if there is a change in the post holder’ and that a business ‘must not accept or make a high value cash payment until it ‘has registered as a high value dealer’.
High value dealers are defined as a ‘firm or sole practitioner, who or whose employees make or accept cash payments of €10,000 or more, or its equivalent in another currency in exchange for goods, including when this payment is made into your bank account or to a third party for your benefit. It does not include payment made for services. Where a payment is made for goods and services, such as fitting a bathroom, the transaction is only in scope if the goods are valued at more than €10,000 or the equivalent in another currency.’
If a business is ‘only ever paid large amounts by credit card, debit card or cheque’ it does not need to register.
In the guidance a number of high value dealer sub-sectors are highlighted, including:
- alcohol
- antiques, art and music
- auction
- boats & yachts
- caravans
- cars
- cash & carry/wholesale
- electronics
- food
- gold
- household goods and furniture
- jewellery
- mobile phones
- plant, machinery and equipment
- recycling
- textiles and clothing
- vehicles other than cars.
The guidance includes core minimum obligations for the high value dealers as well as suggested actions that should be taken. Under the record keeping section these are:
Core obligations
‘You must retain:
- copies of the evidence obtained of a customer’s identity for five years after the end of the business relationship
- details of customer transactions for five years from the date of the transaction
- details of actions taken in respect of internal and external suspicion reports
- details of information considered by the nominated officer in respect of an internal report, where the nominated officer does not make a suspicious activity report
- copies of the evidence obtained if you are relied on by another person to carry out customer due diligence, for five years from the date of the agreement, the agreement should be in writing.
You must also maintain:
- a written record of your risk assessment
- a written record of your policies, controls and procedure.
Actions required
The points below are to be kept under regular review:
- maintain appropriate systems for retaining records
- making records available when required, within the specified timescales’.
Further insight
More information is available online in this money laundering guidance and these pages looking at high value dealer registration
Article from ACCA In Practice