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    money laundering

    xactly how much cash can I take as a letting agent. some say £10K but I thought it was £2k???

    #2
    it's the banks that ask those questions, not you.

    What if you have rentals at £ 1500 per month, and it's £ 3000 for first months rent and deposit. ?
    Or 6 months rent in advance, as it's a foreigner, with no credit history, as not a UK resident, which is £ 10,500 incl. deposit.

    Cash is legal tender, so i ask the question, what's the difference between a cheque for £ 10,500, a bank transfer of £10,500, or cash of £ 10,500. It all goes into your account one week before the tenancy starts.

    I offered to pay 12 months rent in advance last year, and in cash ( I put the cash on the table to show willing ) such was my effort to make sure i got the house over the 4 others that were interested.

    Lets say i have been working 30 years, and have saved £ 42 per month, ( which is only a weeks worth of fags ) that gives me £15120 in my bank account, ready to give as rent advance.

    Comment


      #3
      I don't think there is a limit as (as ram said) cash is legal tender.
      If you receive cash payments of more than 15,000 euros for _goods_ then you must register with HMRC (first result on Google for "limit on payment by cash": http://www.hmrc.gov.uk/mlr/getstarted/register/hvd.htm)

      IMHO, for you it's not just a question of money laundering regulations, but also of security: Do you want to be holding, and be responsible for, £10k in cash?

      Comment


        #4
        S*dd money laundering: If someone came into a letting agents wanting to pay £10k cash (saw 12 months up front..) I'd assume they were dodgy one way or another (brothel farmer, cannabis farmer..) and want nowt to do with that way of doing business: I'd take (say) £1500 in cash & request the rest by bank transfer .. having credit checked & referenced him.. & if he didn''t want to play ball bye-bye then...

        Having said that see this from OFT
        http://www.oft.gov.uk/business-advic.../#.UkPmyHh38Yw
        includes ..

        Money Laundering Regulations 2007

        The OFT supervises estate agents under the Money Laundering Regulations. We have published guidance to help you comply with your obligations under the regulations.

        Download Money Laundering Regulations 2007 core guidance (pdf 208kb)
        Download Money Laundering Regulations 2007 - Information for estate agents and consumer credit licence holders (pdf 76 kb).
        which latter includes this gem...
        What happens if I fail to comply with the regulations?
        **
        Our aim is to ensure that compliance levels are raised. The OFT's guidance should help you to understand what you must do.
        However, if you fail to put in place the anti-money laundering controls to protect your business and prevent it being used by criminals to launder money or fund terrorism this could result in:

        prosecution by the OFT or TSS which could result in unlimited fines and or a prison term of up to two years
        Cheers!
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          Personaly, I don't think renting property and living in it is going to be the number one option for those engaged in Money Laundering.
          They would be in the letting agents asking to rent 50 flats.

          Money Laundering is putting cash somewhere then being able to access that cash by withdrawing it out of the bank or selling something you have just bought..
          Thats the whole point of Money Laundering. You have to be able to access the cash you have put somewhere.

          Renting a flat is not Money Laundering, as you cannot say, I rented a flat for 12 months, i am leaving, give me my money back-- It does not work that way.
          Money Laundering is moving money around so you can spend it later. Not rent a flat and lose the money !.

          According to previous post, how can someone fund terrorism if they lose the money in rental fees ! ! !
          Renting a flat / house is NOT Money Laundering.
          Last edited by ram; 26-09-2013, 08:44 AM. Reason: extra added

          Comment


            #6
            Man runs brothel, unlawfully, for cash. Generates £34k, used £5 notes. (or selling class A drugs to daft students also £34k... ).

            He then pays for a tenancy for himself for 12 months @ £1,500/month up-front in cash, £18k.

            Sounds like money laundering to me....
            I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

            Comment


              #7
              That person could then claim HB but it goes straight back into his bank account clean as a whistle. (sort of)

              Comment


                #8
                Originally posted by theartfullodger View Post
                Man runs brothel, unlawfully, for cash. Generates £34k, used £5 notes. (or selling class A drugs to daft students also £34k... ).

                He then pays for a tenancy for himself for 12 months @ £1,500/month up-front in cash, £18k.

                Sounds like money laundering to me....
                The example you give isn't money laundering. That's living off the proceeds of crime.
                Most drug dealers rent a house, buy a car etc. They aren't charged with money laundering.
                Allow tenants to protect their own deposits. I want free money when they do it wrong

                Comment

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