Penalty for money laundering by motor dealer

legal updates

A high quality motor dealer recently appealed a decision by HMRC to impose a £5,000 (later reduced to £1,000) penalty for failing to register as a 'high volume dealer' (ie someone carrying out cash transactions of 15,000 euros or more).

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Shortly after the money laundering regulations were introduced the dealer had accepted a cash payment of over 15,000 euros.  On checking records HMRC spotted the cash payments and the penalty was imposed.  HMRC both backdated the fees for registration and imposed a fine.  The court of appeal considered the fine was onerous and reduced it to £500. 

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Related Legal Updates

HMRC clobbers garage for not complying with anti-money laundering laws

Your business will need to register with HMRC if it takes a single cash payment of €10,000.

High value motor dealers – beware!

Not all businesses that receive payments worth €15,000 or more need to register as High Value Dealers.

OFT and Anti Money Laundering

For dealers offering consumer credit, they should be aware of the content of these regulations and ensure compliance at all times.

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