Wholesalers will no longer take cash payments of £8,000 or more from retailers unless they can prove they have complied with new HMRC anti-money laundering guidance.

The checks, which came into force on 1 March, 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.

Several wholesalers have recently provided guidance to retailers on the new guidelines.

As reported last week, in a letter sent to retailers and seen by Better Retailing, Booker said: “HMRC has issued revised guidance which now requires 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.

“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 AML Supervision Registration number issued by HMRC and evidence of a valid registration approval date to us.”

Parfetts and Dee Bee Wholesale respond to new HMRC guidance

Parfetts joint managing director Guy Swindell added: “AML rules regarding high-value cash transactions have minimal impact on our customers, as the majority now use digital-payment options and make more frequent and smaller purchases.

“However, we continually update our policy and practices to reflect current HMRC guidelines, and we will continue to provide clear guidance to our customers and support them in meeting their obligations under AML legislation.”

Dee Bee Wholesale trading director Andy Morrison told Better Retailing the firm does not accept cash payments from retailers meeting the high-value threshold.

Payment will also be rejected “if the identity of a beneficial owner (a person(s) who owns or controls more than 25% of the shares or voting rights of a business) cannot be verified.”

Penalties and prosecution risk for businesses ignoring new regulations

Under the new HMRC guidance, any business that 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.

A Bestway spokesperson told Better Retailing: “In November 2024, we updated our AML Policy Practice Guide and Sanctions Policy to align with the latest HMRC regulations.

“At Bestway, we are committed to maintaining the highest compliance standards and continuously monitor high-value cash transactions. We have robust measures in place to identify and address any instances of non-compliance, ensuring that all transactions adhere to the required regulatory framework.”

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