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New rules designed to help combat money laundering will affect travellers entering or leaving the European Uunion. The EU cash declaration scheme derives from European Parliament and Council Regulation No. 1889/2005 and comes into effect in all EU Member States on 15 June 2007. From that date, people who are either entering the UK from a non-EU country, or are travelling from the UK to a non-EU country and are carrying 10,000 Euros or more (or the equivalent in other currencies) will be required to declare the cash to HMRC at the place of their departure from, or arrival in, the UK. "Cash" includes currency notes and coins, and bankers' drafts and cheques of any kind (including travellers' cheques). Forms on which to make the declaration will be available at ports or airports and will also be downloadable from the HMRC website. Travellers could face a penalty of up to £5,000 if they fail to comply with the obligation to declare, or provide incorrect or incomplete information. The Control of Cash (Penalties) Regulations 2007 (SI 2007/1509) bring the new rules into effect. Dave Humphries, Head of Criminal and Enforcement Policy (HMRC) said: "The declaration system is one means of providing information to assist HMRC in targeting movements of criminal cash more effectively." There will still be no declaration required for people travelling between the UK and other EU countries. HMRC officers will not detain properly declared cash if they have no reason to doubt its legitimacy. However, cash may be seized under the Proceeds of Crime Act 2002 if an officer has reasonable grounds to suspect that it is either the proceeds of, or is intended for use in, unlawful conduct. The Proceeds of Crime Act received Royal Assent on 24 July 2002. The provisions relating to seizure, detention and forfeiture of cash came into effect on 30 December 2002. The Act superseded the existing power to seize drugs related cash at the borders and extended the provisions to allow cash suspected to be related to ANY crime to be seized both at the border and inland. Furthermore, an amalgamation of other legislation in force at the time removed the distinction between drugs and non-drugs money laundering offences. Link HMRC: New EU cash declaration rules
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Wednesday, 16 May 2007 | 1084 Hits |
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