ECSH74000 - HMRC powers - contents: Inspection and seizure of cash
Source: gov.uk (2025-05-23)


Introduction

Regulations 69 and 70 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (https://www.legislation.gov.uk/uksi/2017/692/contents) (MLR 2017) give HMRC officers the power to inspect any cash found on the premises, provided that the legal requirements of each regulation are met (see ECSH73000 (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh73000) for regulation 69 MLR 2017, including the definition of premises and ECSH73500 (https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh73500) for regulation 70 MLR 2017).

Cash may be inspected where it is clearly visible in the premises or with the consent of the relevant business.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Clearly visible means that cash is in plain sight and can be seen without searching, for example without moving objects or opening a drawer or safe.

Some examples of where cash may be considered clearly visible are:
- Observing a cash transaction taking place,
- Cash seen in an open or partially open till drawer or safe.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

HMRC officers do have the power to search for cash under the Proceeds of Crime Act 2002 (https://www.legislation.gov.uk/ukpga/2002/29/contents) (POCA 2002) as set out below. Appropriate internal authority to exercise powers under POCA 2002 must be obtained as it is HMRC policy that such powers can only be exercised by an appropriately trained officer - usually from FIS Economic Crime Operations (EC Ops).

Searching for cash when officers are lawfully on the premises – section 289 POCA 2002

If an officer is lawfully on the premises, either through the use of regulations 69 or 70 MLR 2017, or by consent, and they have ‘reasonable grounds for suspecting’ that there is cash on the premises which is:

a) Recoverable property or intended by any person for use in unlawful conduct, and

b) The amount is not less than the minimum amount (£1,000).

Then an officer of HMRC (who in line with HMRC policy has been appropriately trained) may search for the cash under section 289 POCA 2002.

Recoverable property is “property obtained through unlawful conduct” (section 304 POCA 2002).

Conduct occurring in any part of the UK is unlawful conduct if it is unlawful under criminal law - section 241 POCA 2002. The unlawful conduct may also take place outside of the UK - sections 241(2) and 241(2A) POCA 2002.

Prior approval to search for cash before a visit takes place – section 290 POCA 2002

If an officer forms reasonable grounds for suspecting that there is cash on the premises which is recoverable property of an amount not less than the minimum (£1,000), before any visit takes place, then judicial authority for the search of cash is required under section 290 POCA 2002. It is important to note that the granting of judicial authority under section 290 POCA 2002 is not approval for entry of the premises and HMRC officers must still lawfully be on the premises for the search to be conducted.

A HMRC officer may seize any cash if there are reasonable grounds to suspect that it is recoverable property or intended for use in unlawful conduct (section 294 POCA).

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)