Updated 24th April, 2024.
The transaction value that triggers the need to conduct Customer Due Diligence is €10,000 (unless there’s potentially suspicious activity, in which case value is irrelevant). This presents a challenge to UK businesses, as a conversion is required.
There is not a single official conversion platform to use. Accordingly, if you have a qualifying transaction, convert it on the day using a reputable source, for example Oanda. If you’re looking at historic transactions, or want a general guide, refer to the gov.uk monthly conversion table:
https://www.trade-tariff.service.gov.uk/exchange_rates
In May 2024, 1 GBP = 1.1714 EUR.
Therefore, the €10,000 threshold equates to:
£8,536.79
Historic conversion rates since January 2020 have fluctuated from £8,324.32 to £9,209.80. To see these historic conversion rates visit our blog here.
Find the conversion and calculate:
> The current month should be listed at the top of the list under ‘monthly exchange rates’.
> Click ‘view online’ next to that month listing.
> Looking at the left column, ‘Country/Territories’, scroll down to ‘Eurozone’ (noting that the list is in alphabetical order).
> See the rate listed (in the column ‘Currency units per £1).
> Divide €10,000 by that number to get the current conversion into £ GBP.
Work out the conversion to € EUR for a transaction in £GBP:
> On the gov.uk currency conversion page, the current month is listed at the top of the list under ‘monthly exchange rates’.
> Click ‘view online’ next to that month listing.
> Looking at the left column, ‘Country/Territories’, scroll down to ‘Eurozone’ (noting that the list is in alphabetical order).
> See the rate listed.
> Multiply that number by the amount in £ GBP to determine the value in € Euros.
How to calculate an amount from £ GBP? Consider this example (from April 2022):
> You’re conducting a transaction for £8,250.
> In April 2022, the exchange rate was 1.2008.
> Take £8,250 and multiply that by 1.2008.
> The total is €9,906.60, so it fell under the qualifying threshold of €10,000 EUR.
Important note: As a regulated business, you might still decide to conduct due diligence. If you potentially detect any suspicious activity, you are required to conduct due diligence, regardless of value or type of art being sold. You are also legally obligated to swiftly submit a Suspicious Activity Report (“SAR”) to the National Crime Agency (“NCA”) if it is determined by the Nominated Officer (or their Deputy in the NO’s absence) that there is suspicious activity.