£20,000 cash deposit limit from ‌1 July 2024?

Demon said:
Surely the real story in this thread is how does the OP post so many times and yet still shows as having 1 post count? :D

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Posts in GD don't count - it's been that way for quite a few months now.
 
Tech_Boss said:
Guess I don’t have much choice. Thanks for the advice.:)
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Barclay's do a business account... Free for 12 months then £8.50 per month... It also looks like they charge 0.6% on cash deposits. But you so get freshbooks accounting software free which I think is quite well regarded.
Dunno whether that's competitive compared to what other banks offer though.
 
MadMossy said:
You deposit your crypto on an exchange, you change that crypto into whatever currency you want, and use the banking system to transfer it to your bank account. Your not depositing cash, your doing an electronic funds transfer which doesn't have the £20,000 restriction I would assume.
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I know how crypto works... thats not relevant though. The issue we are talking about is the limit of £20,000 cash you can deposit into a standard bank account in a year. If people are receiving cash then crypto isn't relevant at all. They would have to go from cash -> crypto which would involve that cash hitting a bank account first unless they wanted to start money laundering and involving other people.
 
fez said:
I know how crypto works... thats not relevant though. The issue we are talking about is the limit of £20,000 cash you can deposit into a standard bank account in a year. If people are receiving cash then crypto isn't relevant at all. They would have to go from cash -> crypto which would involve that cash hitting a bank account first unless they wanted to start money laundering and involving other people.
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There are options available for taking crypto as payment, and those transactions can be seamless and instant, just scan a QR code. The ones capable of doing this that I am aware of are regulated by the FCA so have the necessary KYC in place to prevent money laundering.
 
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MadMossy said:
There are options available for taking crypto as payment, and those transactions can be seamless and instant, just scan a QR code. The ones capable of doing this that I am aware of are regulated by the FCA so have the necessary KYC in place to prevent money laundering.
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I don't think dodgy dave who is taking cash in hand to avoid tax is going to want to start taking crypto which not only complicates your taxes (how much was X crypto worth when you received it, oh **** its gone down 40% since I received it but I'm taxed at the value received etc) but makes it very hard to avoid said tax.
 
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This is probably where the decision as come from. Luckily they didn't follow the deposit limit of cash £1000 per day, because that could have caused problems.

Cash-based money laundering

Find out more about our work on reducing money laundering through cash deposits via the Post Office and our current expectations of firms’ controls.
www.fca.org.uk www.fca.org.uk

Deposit limits: banks to reduce cash deposit limits, subject to their customer arrangements, to below the existing £20,000 per transaction. The limit of £20,000 per transaction, with unlimited transactions per day, could not be justified for legitimate businesses or personal customers and presented a material risk for money laundering.
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For personal accounts we proposed a limit of £1,000 per 24-hour period (which is the minimum amount law enforcement are allowed to seize under the Proceeds of Crime Act) and £10,000 per 12-month period. Firms should also have considered whether a tailored approach for personal customers is appropriate.
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For business accounts, we asked banks to consider adopting a tailored approach based on expected business customer activity. Recognising that business customer profiles between banks differ, it was not appropriate to set a single specific limit or approach but rather, to ask banks to take a data-led approach using their own customer information.
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Jack_green said:
Lol another way to profit, everytime they push something like this it is never in the interests of the consumer.
The minutes are too low anyway, they have not grown.
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Erm you realise this is the government and anti money laundering rules.

And most companies these days seem to really dislike handling cash because it's a major security issue.
I seem to remember a while back reading that for many companies the cost of security/insurance for dealing with cash was often significantly higher than the cost of dealing with card fees etc.
 
Tech_Boss said:
Guess I don’t have much choice. Thanks for the advice.:)
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Worth shopping around for a business account (wouldn't recommend HSBC though), as you might get better fees, limits and perks outside of Barclays. Similarly look at online providers as some offer free accounts although cash deposits tend to be done via Post Offices and you'll get charged a fee.
Plenty of business accounts are now getting hit with cash deposit limits unfortunately.

Hagar said:
@Tech_Boss Get your clients to pay by cheque.
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Similar with cash deposits, more and more business accounts have cheque limits and fees - HSBC was, 5/6 years back, 50p a cheque on their business accounts.
 
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Werewolf said:
Erm you realise this is the government and anti money laundering rules.

And most companies these days seem to really dislike handling cash because it's a major security issue.
I seem to remember a while back reading that for many companies the cost of security/insurance for dealing with cash was often significantly higher than the cost of dealing with card fees etc.
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But CASH IS KING!!11!! and free to use...or that's what the Facebook memes tell me.
 
For sole traders, they really ought to just switch to a business account.

I guess for individuals large amounts of cash is a bit rare but it could certainly be an issue in some niche cases like for say a serious poker player or sports bettor. Obvs casinos can pay out with cheques but private games do exist too.
 
Is this going to do much to fight the problem really though? Turkish barbers will just open multiple accounts to avoid the 20K limit. I welcome any attempt to cut down on tax evasion and laundering for sure but not sure it will do much.
 
Tech_Boss said:
Just had this email from Barclays:

As you use your account to pay in cash, we wanted to let you know fr‌om ‌1 July 2024, we’re introducing a maximum £20,000 cash limit you can pay into your personal accounts each year. This will restart each January.

If you have more than one personal account with us, this means the total amount of cash you can pay in across all of them is £20,000, including any children’s savings accounts.

This doesn’t include cash you’ll pay into any business current account you might have.

If you run a business but don’t have a separate account for it and need a higher cash deposit limit, search ‘Barclays business banking’ to find out more about our business accounts. It’s important to keep your business and personal accounts separate.

Why we’re doing this

The National Crime Agency estimates that over £35 billion has been laundered in the UK. Introducing our cash deposit limit will help us fight financial crime.

I’m a IT Support sole trader and take card payments / cash. Most of my customers are of the older generation and tend to prefer cash. I don’t know what to do.

I called my Barclays premier banking team this morning to have a go at them. It didn’t achieve much, but I had to let my feelings be known.

Anyone else received something similar from their bank?
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Your there IT support why don't you show them how make payments using online banking?
 
Bear said:
Because if he was a drug dealer and then pretends he is supplying "IT support" taking cash jobs, isnt that laundering?
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Yes, if the cash is being made to look like its coming from the business, but how will having a business account rather than a personal one in that circumstance combat money laundering <shrug>
 
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