Retailers making large cash purchases from wholesalers will now need to meet stricter anti-money laundering requirements. From 1 March, HMRC will enforce new rules preventing cash payments of £8,000 or more unless retailers provide proof of compliance with anti-money laundering (AML) regulations.
The changes mark a significant tightening of financial oversight within the cash-and-carry sector. Under the updated framework, businesses must present an AML Supervision Registration number and confirm their registration approval date before making high-value cash transactions.
Stricter Compliance Requirements for High-Value Transactions
HMRC’s revised regulations affect retailers who rely on cash transactions for bulk purchases. According to Better Retailing, wholesalers including Booker, Makro, and Bestway have begun implementing measures to verify compliance among their customers.
Booker stated that businesses already registered for high-cash payments would need to provide additional documentation before being permitted to continue making such transactions.
A spokesperson for Bestway confirmed that the company updated its AML Policy Practice Guide and Sanctions Policy in November 2024 to align with HMRC’s latest requirements.
The company emphasised its commitment to ensuring full compliance with financial regulations, highlighting the need for businesses to adapt to the evolving landscape of AML oversight.
Retailers Shift Towards Digital Payments Amid Regulatory Changes
While the new rules impose stricter checks on cash transactions, many wholesalers report that the impact will be minimal due to a growing preference for digital payments.
Parfetts’ joint managing director, Guy Swindell, stated that most customers now opt for electronic payment methods and make smaller, more frequent purchases.
As a result, compliance with the AML framework is expected to affect a limited segment of the wholesale sector.
However, wholesalers continue to update their internal policies to align with HMRC’s guidance. According to industry sources, businesses are providing clear instructions to customers on meeting AML obligations, ensuring a seamless transition to the new compliance framework.
Despite the shift towards digital transactions, the rules signal an increasing regulatory focus on cash-based commerce and its potential risks within the wholesale supply chain.
