HMRC cash enquiries

[warpig3]

A colleague recently told me that when he lodged the proceeds of his house sale to his bank account he was contacted by HMRC. Apparently they wanted to know how he came by this money (72k).

Are the banks/ building societies obliged to inform HMRC of large lodgements and, if so, at over what amount do they inform them?

Many thanks
warpig

[anneasquith]

are you the original warpig from a few years ago ?

[warpig3]

Yes, the one and only. Havent been on in ages. Firewalled in work and next to no time at home! I see quite a few familiar names though, which is great. I take it thinks haven't changed much?

[ubasses]

Never used to. Always did a money laundering report if we did not know or were not happy with where the money came from, that could get them involved.

[warpig3]

Thanks ubasses, thats interesting, I wonder if they (the banks) have changed their practice or perhaps my colleague is just a bit dodgy!

[hc4361]

You might find this interesting, although it is nothing to do with banks.
http://www.hmrc.gov.u...rted/register/hvd.htm

[hc4361]

It's because of the Proceeds of Crime Act 2002 which makes the banks liable if they fail to report unusual activity such as large deposits.
I don't think there is a set figure that triggers a report - some people may be earning £10k plus a month and their wages wouldn't be reported every month. If they made a much larger deposit it would be reported.

Somebody who deposits £1k a month would be reported if they deposited £10k.

Some banks set the limit at £5k where the customer does not normally make a single deposit of more than £1k.

It is to stop money laundering from selling drugs, mainly.

[miazmo-1951_]

any amount of money above the norm deposited into an account is automaticaly redflagged for investigation by customs and excise or inland revenue, all bank staff are obliged to inform on you too although the banks software does it as standard. if it had been done as an electronic transfer via a solicitor or building society this would not have happened. thats why people who dont want to be caught deal in cash cos its harder to be found.

[warpig3]

Thank you all.

Will check out that link later hc4361, as am off to work now.

Maizmo, thats interesting about the electronic transfer and it makes sense as a transfer from a solicitor would legitimise the cash (in most cases, lol).

Cheers, warpig

[redcrx]

good to see you again, warpig, hope you and piglet are well

[anneasquith]

warpig,,, did you relocate to scotland some years ago ? ( crete )

[tonywiltshire]

Unusual but not unreasonable, nice to see HMRC are on the ball.

[pretty_snowdrop]

It just to satisfy money laudering regulations. However a single large sum of money which can easily be explained is hardly suspicious activity.

[warpig3]

Bloomin heck crete!!!!!!!!!!!!!!! Now there is a blast from the past. How are you? Hope all is well. I left Scotland and returned to Belfast (career break was over).

All fine with me, the piglet is now 3 and a half and such a laugh, keeps me on my toes.
xxx

[anneasquith]

good to see you posting again :)