Booker is no longer going to be taking cash payments of £8,000 or more from retailers, unless they can prove they have complied with new HMRC anti-money laundering guidance.
The wholesaler will put the new checks in force from 1 March. They require retailers who meet the threshold to provide an Anti-Money Laundering (AML) Supervision Registration number and evidence of the date they were approved. These can be applied for through HMRC, who updated the guidance in February.
In a letter sent to retailers, seen by our sister website Better Retailing, Booker said: “HMRC have issued revised guidance which now require us to make sure that our customers are appropriately authorised by HMRC to make High Cash Payments before we can accept a High Cash Payment from that customer.
Read more: Details of Booker’s rapid home delivery service revealed
“Our records show that you are currently registered to make High Cash Payments to [Booker and Makro]. We are therefore writing to explain what we will need from your business, should you wish to make further High Cash Payments to us.
“With effect from 1 March, before we can receive a High Cash Payment of £8,000 or more (or indeed any qualifying High Cash Payment) from your business, you will be required to provide your Anti Money Laundering (AML) Supervision Registration number issued by HMRC and evidence of a valid registration approval date to us.”
Penalties for failing to comply with new HMRC anti-money laundering guidance
Payment will also be rejected “if the identity of a beneficial owner (a person(s) who owns or controls over 25 % of the shares or voting rights of a business) cannot be verified.”
Under the new HMRC guidance, any business which fails to comply with the regulations “may face a civil financial penalty or criminal prosecution that could result in an unlimited fine and/or a prison term of up to two years.”
HMRC added it has the power to suspend or cancel a business’s registration, “ban or suspend individuals from having a role in a supervised business,” or issue a statement censuring the business.”
