Is this illegal?

whereschris

My friend, who lives and banks in France has recently bought musical instrument (he's a musician) for nearly 20,000 euros. He paid the bloke cash and his bank are now demanding to know what he did with the cash and want a statement from the bloke he bought it from. Problem is he can't get in touch with him. He has asked if I will write the letter to get them off his back but I don't feel very happy with this. He assures me it's just for the banks record but I feel uncomfortable about it though I know that there is nothing underhand about the deal.

Any thoughts?

fengirl_2

I think they are asking this under the anti-money laundering regs. I think your friend needs to tell the truth. If you tell the bank that you sold him the instruments, the bank will probably tell HMRC that you are trading as an instrument supplier on a cash basis. Then where will you be?

Pound

Don't do it. I know nothing about French law but It sounds like the bank are doing checks to comply with money laundering laws. If you do what he's asking you might find someone asking you what you did with the €20,000.

whereschris

Thanks both. It sounds silly but I really don't want hassle from another country too. You have both confirmed my thoughts.