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High
value dealer (HVD)
An
HVD is any business prepared to accept high value payments (HVPs). An HVP is a
payment of at least €15,000 (or equivalent in any currency) in cash for goods,
whether as a single transaction or in several instalments. This includes circumstances
where a trader's customer deposits cash directly into the trader's bank account.
If you are an HVD you need to put anti-money laundering systems in place so that
you can identify and prevent money laundering and report any suspicious activities.
You also have to register with HM Revenue & Customs (failure to register with
HMRC before beginning to trade and/or accepting HVPs of €15,000 or more will
result in a penalty), pay an annual fee based on the number of premises through
which you accept HVPs and report changes during the registration year. Many motor
vehicle traders choose not to register and are therefore not able to accept cash
amounts greater than the HVP limit above. | Paying
cash with a trader
Unless a trader is
registered as a High Value Dealer or HVD with HM Revenue and Customs, payments
(High Value Payments or HVPs) in excess of the Sterling equivalent of €15,000
cannot be accepted in cash, whether as a single transaction or in several instalments.
So, with current Euro/Sterling exchange rates bouncing around parity or just above,
that means a Sterling cash payment limit of £13,500 to £14,000 for
practical purposes at present. The HVD requirement and HVP limit are part of the
UK money laundering regulations effective from 2007 and a breach by a trader exposes
the trader to an HMRC penalty. (10.2.09) |
Safe
trading cautions and advice
See the Metropolitan Police and VSTAG advice. More |
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