Cash declaration rules for EU travellers

With effect from tomorrow, 15 June, a new EU law on the declaration of cash by travellers, comes into force.

The aim of the European Parliament and Council Regulation (EC) No 1889/2005 is to target money laundering. If you are travelling to the UK from outside the EU, or travelling from the UK to anywhere outside the EU, then you could be affected by the law.

If you are making either of the above journeys, and are carrying cash of 10,000 or more euros, or the equivalent, you will be required to declare the cash to the taxman. Failure to do so will lead to a fine of up to £5,000.

'Cash' doesn't cover just banknotes and coins, but extends to bank drafts and cheques.

The declaration must contain the following information:

• the declarant, including full name, date and place of birth and nationality;
• the owner of the cash;
• the intended recipient of the cash;
• the amount and nature of the cash;
• the provenance and intended use of the cash;
• the transport route;
• the means of transport.

Any information obtained under the declaration may be shared with the authorities responsible for dealing with  money laundering, as provided under art 6 of the EEC Council Directive 91/308 (on prevention of the use of the financial system for the purpose of money laundering).  On close reading of the new regulation, it appears that even where a declaration has been made, and accepted as legit, this information can still be shared.

Cash that has been properly declared may be seized by the taxman, under the Proceeds of Crime Act 2002, if he has reasonable suspicion that it has come from dodgy dealings. So is it then up to the traveller to prove that the money is legit?

Also, if a traveller is carrying cash below the 10,000 euros mark, and there are indications to suspect that the money is linked to illegality, those indications, together with the traveller's name, date and place of birth, nationality, and means of transport, may be recorded and processed, and shared with the authorities responsible for dealing with  money laundering.

The declaration form should be up on the HMRC website from tomorrow. I will add a link to this post when I find the form.