UK – Cash payments for scrap metal at recycling yards are now a criminal offence in England and Wales, effective as of December 3. The change in legislation means that money may only be transferred electronically or by cheque; any breach can result in fines, with a higher penalty reserved for graver incidences.
The update of the Scrap Metal Dealers Act 1964 also increases police powers; they may now enter scrap metal yards by warrant to check compliance with the ban on cash payments.
In case of a breach, the paying company as well as the employee responsible for making the payment and any management staff who could have prevented the illegal payment will all be guilty of committing an offence. The UK’s Home Office has issued guidance on its website detailing how the new ban will be implemented.
Though the British Metals Recycling Association (BMRA) is not convinced that all recycling players – especially small traders – are ready for the change, it states that many companies have anticipated such a move and have adjusted their business operations accordingly.
Banning cash payments alone ‘will have a devastating effect on legitimate small traders whilst having little effect on the rate of metal theft unless there is a robust regulatory framework to back it up’, BMRA’s Director General Ian Hetherington has warned.
The Scrap Metal Dealers Bill, which is currently being considered by the House of Lords, aims to improve regulation and enforcement to rid the industry of illegal and unscrupulous dealers, the association states. ‘If illegal sites are allowed to continue to trade, they will no doubt offer householders and businesses payment in cash too, therefore negating the purpose of the cash ban – to remove the rewards that make metal theft so enticing,’ Mr Hetherington explains.
The new law on cash payments applies to traditional scrap yards as well as so-called ‘itinerant’ collectors who pick up materials from house to house, including scrap metal. ‘We are confident that 99% of itinerant collectors are now covered by the cash ban,’ says Mr Hetherington.
‘However, as legislation currently stands, some metal traders – such as motor vehicle salvage operators – are exempt, which leaves an unfair playing field. It poses a serious challenge to small metal recyclers who rely on the trade of householders and businesses who sell scrap items every day and who will undoubtedly take their business to collectors who will continue to pay cash.’
The Scrap Metal Dealers Bill is designed to eradicate such issues while improving regulation and enforcement. ‘It is now more important than ever that it makes it into law and is implemented as quickly as possible,’ Mr Hetherington insists.
For more information, visit: www.recyclemetals.org
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