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UK Set to Ban Cash Payments Over £10,000, With New ID Checks for Transactions Above £6,300
The UK government is preparing to introduce stringent new limits on large cash payments as part of a broader crackdown on money laundering, tax evasion, and organised crime. Under the proposed rules, cash transactions over £10,000 will be banned entirely, while any cash payment above £6,300 will require customers to present valid identification.
The policy—expected to be announced as part of a new financial transparency package—aims to bring the UK closer in line with updated international anti-money-laundering standards. Similar measures have already been rolled out across Europe in recent years as governments seek to close loopholes exploited by criminal networks moving illicit funds through high-value cash transactions.
Why the Government Is Acting Now
Officials argue that large cash payments remain a key method for criminals to hide the origins of illegally obtained money. The Home Office has said that while digital transactions are easily traceable, cash payments above certain thresholds create an “opaque environment” that can be abused.
Law enforcement agencies have long pointed to high-value cash dealings in sectors like luxury cars, jewellery, metals, construction equipment, and art as common routes used by gangs to mask illegal earnings.
By tightening the limits, the government says it hopes to:
• Reduce opportunities for money laundering
• Bring greater transparency into high-value purchases
• Deter tax evasion linked to unrecorded cash payments
• Align the UK with international anti-financial-crime frameworks
What the New Rules Mean for Businesses and Shoppers
If implemented, businesses will be prohibited from accepting any cash transaction over £10,000, regardless of the customer or context. This includes one-off purchases and aggregated payments.
For purchases between £6,300 and £10,000, customers would be required to show identification—likely a passport, driving licence, or government-issued ID card—to verify the buyer’s identity and allow the business to record the transaction.
Industries expected to be most impacted include:
• High-end retail
• Motor vehicle sales
• Property and rental deposits
• Investment goods such as gold, antiques, and watches
Small businesses that rely heavily on cash transactions may also need to update their compliance procedures, record-keeping, and staff training to meet the new requirements.
Concerns Over Privacy and the Decline of Cash
Critics warn that the measures could accelerate the ongoing decline of cash usage in the UK, disproportionately affecting older citizens, rural communities, and those without bank accounts. Civil liberties groups argue that the policy could contribute to a “cashless society by stealth,” reducing financial privacy and forcing consumers into digital systems.
Some business groups have also expressed concern about the additional administrative burden, particularly for small retailers who may struggle to adapt to new reporting obligations.
Government Response
Ministers maintain that the rules are necessary to protect the financial system from criminal abuse and stress that ordinary consumers will not be affected by everyday transactions.
A Treasury spokesperson has said the government will consult extensively with businesses and industry organisations to ensure the rules are “proportionate, enforceable, and supportive of legitimate trade.”
When Will the Changes Come Into Effect?
The legislation is expected to be introduced in Parliament within the coming months. If approved, the new limits could come into force as early as next year, though there may be a phased implementation period to give businesses time to adjust.
As the UK tries to strengthen its financial safeguards, the debate over the future of cash—and the balance between security and privacy—is likely to intensify in the months ahead.
Attached is a news article regarding the government introducing a ban on cash payments over 10k and cash payments over £6.300 would require ID
https://sumsub.com/media/news/misleading-eu-cash-ban-claims-go-viral-following-new-aml-rules/
Article written and configured by Christopher Stanley
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