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New EU Cash Declaration Rules

HM REVENUE AND CUSTOMS News Release (NAT 30/07) issued by The Government News Network on 16 May 2007

A new European Union (EU) law on travellers declaring cash comes into force in one month's time. It is being introduced to help combat money laundering.

As from 15 June 2007, 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 HM Revenue & Customs (HMRC) at the place of their departure from, or arrival in, the UK.

Forms on which to make the declaration will be available at ports or airports and will also be downloadable from the HMRC internet site. Travellers could face a penalty of up to £5000 if they fail to comply with the obligation to declare, or provide incorrect or incomplete information.

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."

Notes for editors

1. 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.

2. "Cash" not only means currency notes and coins but also bankers' drafts and cheques of any kind (including travellers' cheques).

3. There will still be no declaration required for people travelling between the UK and other EU countries.

4. The countries of the EU are Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, (including the Canary Islands), Sweden and the United kingdom (not including the Isle of Man and the Channel Islands).

5. The declaration form will be produced with a carbon backed top copy so as to allow travellers to have a duplicate, which officers of HMRC may ask them to produce as evidence of having made a declaration.

6. 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.

7. 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.

8. HMRC is one of the Government departments responsible for enforcing frontier protection.

9. Further information is available at http://www.hmrc.gov.uk

Website http://www.hmrc.gov.uk

Customs Confidential
Tel: 0800 59 5000