New EU cash declaration rules

From 15 June 2007 a new European Union (EU) law on travellers declaring cash came into effect. It has been introduced to help combat money laundering.

People who are travelling from the UK to a non EU country, or entering the UK from a non EU country, and are carrying the equivalent of 10,000 Euros or more will be required to declare this to HMRC at the place of their departure from, or arrival in, the UK. However, there will still be no declaration required for people travelling between the UK and other EU countries.

The 10,000 Euros limit includes currency notes and coins, bankers’ drafts and cheques of any kind, including travellers’ cheques. There is a penalty of up to £5,000 for failing to comply with the obligation to declare or providing incorrect or incomplete information.

The declaration form will be available at ports and airports and will be produced with a carbon backed top copy so that travellers can keep a duplicate, which HMRC officers may ask them to produce as evidence of having made a declaration. The form will also be downloadable from www.hmrc.gov.uk

Dave Humphries, Head of Criminal and Enforcement Policy at HMRC said: “The declaration system is one means of providing information to assist HMRC in targeting movements of criminal cash more effectively.”