Banks Reporting to HMRC

davidm_uk

Does anyone know if, in the UK, there is a regulation like I believe there is in the USA whereby banks have to report all transactions over a certain value to the IRS, and if so what that value is in the UK?

Mistermeaner

What you up to dave?

As far as I know there is no cash value trigger (unlike US 10k) but there is a general responsibility regards suspicious transactions.

Showing up with a pile of blood stained cash will be treated differently from a 1mil transfer to a conveyancing solicitor

jimjames

Depends on account.

As far as I'm aware all banks report all money paid into ISAs to check against limits.

So if you're trying to hide money then an ISA probably isn't the best idea.

Archi_Bald

It's not just ISAs they have to report, it's all interest paid http://www.hmrc.gov.uk/esd-guidance/bbsi-guidancenote2014-15.pdf

Individual transactions don't, as far as I know, need to be reported. However, AML checks need to be carried out and I believe the treshold for automatic checks is the equivalent of €15,000 (in either a single transaction or in transactions that are suspected to be linked).

As always, nothing to fear if you have nothing to hide.

Consumerist

As always, I fear I have nothing to hide.

davidm_uk

LOL - nothing to hide, and no plans to so do.

My curiosity was just triggered by a indirectly related event, where I was trying to transfer £20K between currents accounts in two different high street banks (UK). Although that amount was below the daily limit (for the sending bank), and should have gone via faster payments, I had a message after I'd entered the transfer at the sending bank to say that it was awaiting investigation and confirmation, which might take up to 24 hours.

So much for "faster payments"!

evenasus

I've transferred the £10K faster payments limit many times and as of yet, never been challenged.

Paying for new car tomorrow with my debit card, so wonder if that will be questioned?

SliAbhaile

davidm_uk wrote: »

I was trying to transfer £20K between currents accounts in two different high street banks (UK)

Like many here I've often had bigger sums move through my current account when fixed term deposits mature and need reinvesting.

It's never raised any eyebrows with HMRC, the only problem I have is it makes my bank manager think I'm rich and he keeps phoning me trying to get me into his office for an 'investment review'.

jamesd

It isn't HMRC who could get reports like that. It's the National Crime Agency's suspicious activity report team.

Don't be concerned about such reports if your activities are legitimate. Even if a report gets made the NCA has more serious things to deal with than an ordinary consumer happening to transfer a bit more money than usual sometime. They have the resources to check the trail of the money on its way to the account you sent it from, for example. That gives them a broader picture than any individual bank.

If the bank did make a report the first sign that you would probably have is a delay until more than just the next day. This is because the reporting bank has the option to file a report that seeks the NCA's consent before making the money available to you. That may well take longer than just the next morning. Or not, It depends on how much work the NCA decides to do and its workload.

More likely all it will take is a human at the bank deciding it's not worth filing a SARS item. Don't ask the bank what's happening, it's a crime for them to tell you if a SARS report has been made.

Just carry on with your normal transactions and let all this happen behind the scenes without worrying about it.

evenasus

evenasus wrote: »

I've transferred the £10K faster payments limit many times and as of yet, never been challenged.

Paying for new car tomorrow with my debit card, so wonder if that will be questioned?

I fear I tempted fate with my post above.

I just tried to transfer a smaller amount of £2500 and received a message from Barclays... Your payment has been delayed because we need to perform some extra checks to protect your account from potentially fraudulent activity.....

Annoying, as I've transferred £30K in total from them during the last 2 months and didn't generate any message from Barclays.

HarryD

I think the banks tell HMRC about interest they have paid you.