Received a letter, Money Laundering laws?

inmypocketnottheirs

olly300 wrote: »

So you agree with organised crime? The Money Laundering Regulations are a EU Directive which the UK government has to implement being a member of the EU. Even if the UK wasn't in the EU the idea of the regulations is to catch criminal gangs so would probably be law anyway.

This means that all banks, building societies, estate agents, solicitors, financial advisors, accountants etc have to check the money is from a legal transaction and not dirty. This is so they personally don't end up in prison and being fined. They don't care where it comes from as long as it's legal.

Irrelevant. What I disagree with is petty meddlesome governmental interference with my daily affairs. If you want to buy into an autocratic nanny state then fine, but don't expect me to allow the wool to be pulled over my eyes. I see this government exactly for what it is. Incompetent and without any authority. That is why it gets others to do its job.

I have nothing to fear. I am not a criminal. My income is declared. I do not advocate nor take part in organised crime. But then again, as my signature says......

RayWolfe

Kashinoda wrote: »

A contractor bought it and paid with a cheque (30k) and the rest cash, I don't know the exact figures as I guess it's none of my business! Why it was paid for like that I don't know, but doesnt mean there's anything wrong with it.

So it does look as if it has the potential to be dodgy money! Why would a property developer be dealing in cash, unless it's funny money?
This is exactly why there are laws to watch for such things.

gt94sss2

Kashinoda wrote: »

The sale was actually from an old run down property she inherited. A contractor bought it and paid with a cheque (30k) and the rest cash, I don't know the exact figures as I guess it's none of my business! Why it was paid for like that I don't know, but doesnt mean there's anything wrong with it.

What's weird is we've had nothing from her other bank about the large cheque deposit, are there different regulations for this?

There is nothing wrong with your mother accepting cash - so your mum has nothing to worry about and has no need to panic etc - just tell them where the funds came from.

However, it could indicate that the contractor is doing something dodgy.. from cooking his books, fraud, money laundering etc..

With a cheque (as opposed to cash) the banks know the source of the funds being paid into the account..

Regards
Sunil

inmypocketnottheirs

gt94sss2 wrote: »

With a cheque (as opposed to cash) the banks know the source of the funds being paid into the account..

Regards
Sunil

But what business is it of theirs?

gt94sss2

inmypocketnottheirs wrote: »

But what business is it of theirs?

Well, if its a cheque... for one thing the banks need to know the bank account details of the issuer so they can collect the money!

Apart from that, the banks need to follow the law - if you don't like the law get it changed.. don't blame the banks for following it.

Personally, I hate the thought of ID cards - useless expensive pieces of junk.. but I can't do anything about that until the next general election..

Regards
Sunil

inmypocketnottheirs

Sunil, don't misunderstand me. The banks love this cloak of 'money laundering'. They work with the government, they are in each other's pockets for goodness sake! Let's all pretend that the banks and the government are doing all of this for our own good shall we? Come on!

bengal-stripe

Methods of Payment
Sterling cheque. To be drawn on a UK bank and made payable to 'Bonhams 1793 Limited'. If payment is made by post, please enclose the tear-off slip from your invoice. Cheques drawn by third parties cannot be accepted. If you have a credit or cheque acceptance account with Bonhams, you will be able to take your goods immediately providing the sum is within the agreed limit. Otherwise, it will be necessary to allow at least five working days for the cheque to clear before collecting your purchases

• Sterling bankers draft. This will need to be confirmed with the issuing bank, prior to acceptance
• Bank transfer. All transfers must state the relevant sale number, lot number and your bid / paddle number. If transferring from a foreign currency, the amount we receive must be the total due in pounds sterling (after currency conversion and the deduction of any bank charges). Our bank details can be found on the reverse of your invoice or in the sale catalogue under 'Important Notices'
• Debit cards drawn on a UK bank. There is no additional charge for purchases made with these cards. Debit cards drawn on an overseas bank or deferred debit cards will be subject to a 3% surcharge.
• Sterling cash. Payments of up to £5,000 can be made at the Cashier’s Office, either during or after a sale.

Taken from the conditions of auction house Bonhams.
http://www.bonhams.com/

Note that cash payments are restricted to a maximum of £ 5,000. At one time you would have been very welcome with a suit case full of bank notes. Not anymore.

Kashinoda

gt94sss2 wrote: »

There is nothing wrong with your mother accepting cash - so your mum has nothing to worry about and has no need to panic etc - just tell them where the funds came from.

However, it could indicate that the contractor is doing something dodgy.. from cooking his books, fraud, money laundering etc..

With a cheque (as opposed to cash) the banks know the source of the funds being paid into the account..

Regards
Sunil

Oh I see, so I'm guessing there are different regulations (if any?) regarding cheque payments because its all on the system right?

I just been on phone to the contractor, says the money come from a Car Sale and is willing to provide anything we need incase the bank gets fussy. I seriously doubt they will however.

Thanks for all the feedback so far:j

Iamthesmartestmanalive

Kashinoda wrote: »

Oh I see, so I'm guessing there are different regulations (if any?) regarding cheque payments because its all on the system right?

I just been on phone to the contractor, says the money come from a Car Sale and is willing to provide anything we need incase the bank gets fussy. I seriously doubt they will however.

Thanks for all the feedback so far:j

Cheques can be traced back to their source unlike cash easily

as for inpocket- talk about paranoia

Im sure the banks love spending millions of pounds complying with the legislation:rolleyes:

Mikeyorks

bengal-stripe wrote: »

Note that cash payments are restricted to a maximum of £ 5,000. At one time you would have been very welcome with a suit case full of bank notes. Not anymore.

And they could have left it outside the front door .... and safely picked it up before they closed for the night! Not anymore.;)

It's basic security more than it is money laundering. (You need to register with Bonhams - and they ID you.) It's the same reason HMRC won't accept cash in local offices any more - they send you round to the local Post Office. Cuts down their security requirements - and the high cost of secure pickups to take it to the local Bank