Major scrap metal recycler European Metal Recycling (EMR) is paying traders for scrap with cheques and then giving them the option to cash the cheque on its facilities.
EMR is working as an agent for Cheque Exchange Limited and as a result is offering a cheque cashing service at its sites.
It means people trading metal with EMR can use the on-site cheque cashing service to receive a cash payment shortly after receiving a cheque for the material.
In a statement to SCM, EMR confirmed that it is using this process. The statement said: “EMR has developed a range of flexible, convenient, cost-effective and above all legally compliant payment methods in response to the cash ban.
“Where customers have chosen to be paid by cheque, we have negotiated preferential rates at high street stores. We are also able to offer an on-site cheque cashing service as an agent of a leading UK PLC registered money service business.
“We took care to satisfy ourselves that these services were legally compliant before launching them, including discussions with both senior police officers and HMRC. We are confident that the services which we are offering comply not just with the letter of the law, but with its spirit as well.
“Furthermore, our sophisticated data systems and Know Your Customer checks fully comply with the principle set out in Home Office guidance, which states that “the overriding requirement is for transactions to have traceability and to provide an effective audit trail”.”