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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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