Thank you very much everyone - I have passed on all your replies.

I still wish I had so much money

I asked DH and he said "Duh, Yes! anything over £5,000 will be flagged up." But then he rolled over and pretended to be asleep again.

Sorry.

I work in a Bank and the person receiving the money is more likely to be investigated for money laundering. Esp. if a deposit of that sum is an unusual transaction considering their account history.

However, as stated above, handing over £45K in cash to builders seems like sheer madness.

but yes, agree with others that in your friend's place there is no way I would do this.

He won't get any grief from the bank, but he's putting himself in a very shaky position if the builder won't issue a proper receipt or invoice or anything. What if they get into a dispute over payment? There will be nothing to show he ever paid a dime.

You'd be a total mug to pay them in cash! Tell them bank transfer or NOTHING! Only people who want cash are dodgy

Regards money laundering the limits apply to large cash deposits made rather than withdrawals. If your friend has only recently put the money into the account and then withdraws it in a short time frame it may alert someone at the bank (especially if he is making some kind of loss in making the withdrawal i.e. put £60k in a bond and then close it shortly after getting only £45k back due to penalties). If he is just taking money out of an established account with no other suspicious activity it's highly unlikely that this would alert anyone. I don't really think that he needs to worry, as others have said it is up to those recieving the money to declare it to the tax office. Also 45k is a lot of money to you and I but not really a significant sum within the banking system.

Do agree with others about risks involved in paying for what must be significant work in this way though.

Well when me and my sister were buying each other out of a house, she didn't want to pay to do one of those instant transfers and the bank's suggestion was that she withdraw £104,000 in cash and hand it to me!!

Needless to say, I said no thanks

In the event she wrote an ordinary cheque. I just cashed it, no corroboration, no cheque guarantee card. I was sure that one or other of us would get a call saying "is this kosher". But no! They just took the money out of my sister's account

I will, but he's working tommorow, so I might not have an answer untill Sunday.

ooooh Lynette - would you mind asking him about it tomorrow ??

ah yes you're on the right tracks Idris and Bleep! We've just googled and apparently there's a laundering thing that kicks off if you withdraw more than 5k in one go.