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The Money Laundering Regulations are to be extended, with effect from 1 June 2003, in two significant ways:

• ·         All solicitors, accountants, licensed conveyancers, estate agents and business transfer agents will become subject to the requirement, previously imposed on banks and financial service businesses, to ‘know their customer’ and to report suspicious transactions to the authorities.

• ·         It will be illegal for any business to sell goods, of any kind, for a cash payment equivalent to 15,000 euros or more (approximately £10,000) unless it is registered with HM Customs & Excise as a ‘high value dealer’.

Registration as a ‘high value dealer’ will cost about £100 and the business will also have to send its nominated Money Laundering Reporting Officer on a training course, which is likely to cost a further £250. High value cash transactions will have to be recorded, with evidence of the customer’s identity, and any suspicious transactions reported to the authorities.

Auctioneers will be treated as vendors, and so may be required to register as high value dealers, even though they sell goods on behalf of their clients. Auctioneers, in particular, will have to watch the rules ‘linking’ a series of sales which together are worth £10,000 or more.

Final details of the scheme are still awaited, but should soon be available from HM Customs & Excise.