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HMRC internal manual

Money Laundering Regulations: Compliance

HM Revenue & Customs
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Business sector specific Guidance: Money Service Businesses: Introduction- Cheque Cashers

Cheque Cashers cash cheques which are made payable to their customers (cheque ‘payee’). The charge for this service is usually deducted from the face value of the cheque. The cheque casher pays the customer, less the fee, and the cheque is then banked. The business accepts the risk that the cheque may not be honoured on presentation for payment. The most common type of cheque accepted is wages cheques with a value of around £250 to £350.

The majority of customers are individuals who either do not have a bank account or are in need of the money quickly and can’t wait for the cheque to clear through the banking system.

The British Cheque Cashers Association (BCCA) is the trade association of the cheque cashing industry in the UK. There are approximately 1,000 cheque-cashing outlets in the UK of which 350 are members of the BCCA.

Cheques fall into the following categories.

* Third party (TP). These cheques can be issued by central government, local government or the private sector.
* Pay Day Loans. These cheques can also be referred to as delayed presentation (DP). The drawer (person who wrote the cheque) and the customer are one and the same.