Legal information about cashless trading
When did cashless trading coming into effect? Cashless trading came into force in December 2012, as part of the updated Legal Aid, Sentencing and Punishing of Offenders Act 2012. This Act banned the use of cash in scrap metal trading in England and Wales, making it an offense to pay in cash.
Itinerant Collectors are only exempt if they have been granted an order under section 3.1 of the Scrap Metals Dealers Act by the local Police Chief or Local Authority, otherwise they are banned from using cash also. Vehicle dismantlers buying end-of-life vehicles (ELVs or scrap cars) for parts brokerage are still able to pay in cash. [Cashless trading UK, ID requirements, Reclamet Ltd]
Keep updated on cashless trading by visiting the BMRA website.
As part of Operation Tornado, it is an requirement for anyone selling scrap metals to dealers participating in providing photographic ID. The scheme was developed in partnership with the British Metals Recycling Association (BMRA), the Home Office, the Association of Chief Police Officers (ACPO) and Durham, Northumbria and Cleveland Police. For more information about Operation Tornado visit the British Transport Police website.
The New Scrap Metal Dealers Act
The updated Scrap Metal Dealers Act (SMDA) came into effect in Autumn, 2013, from this date vehicle dismantlers and itinerant collectors and will all be subject to the ban on cash. The new SMDA also makes it a necessity for identification, at point of sale and its a legal condition. The legal requirements for proof of identification will be very similar to those required by operation Tornado.