Cash ban for scrap metal dealing

Posted on 26 Oct 2012 by The Manufacturer

New guidelines on the implementation of a ban on cash payments for scrap metal were released by the Home Office this week.

The new regulations will come into effect on December 3 this year. They will demand that all scrap metal dealers keep transaction records for purchases and that these must be made via electronic payment of cheque.

The new law comes into place to try and tackle escalating occurrences of metal theft across the UK. The Association of British insurers estimates that over £1m worth of metal is now stolen in the UK every week.

Manufacturing and industrial sites, particularly sites storing copper, are particularly vulnerable to this rise in crime.

The forthcoming change in UK law on scrap metal dealing will amend the 1964 Scrap Metal Dealers Act. As well as forbidding cash payments changes will see an increase in fines for key offences already outlined under the Act.

Alchemy Metals, a family owned scrap metal merchant based in Stevenage, Hertfordshire, welcomed the news that the government is taking steps to better regulate its industry but said the December regulations are “just the start of the journey” towards eliminating metal theft.

To read the Home Office’s guidelines on the implementation of the cash ban for scrap metal transactions go to:

See TM December/Jan for an interview with Alchemy Metals on these new regulations and how manufacturers can protect themselves from becoming victims of metal theft.