HUNDREDS of businesses in the south that accept large amounts of cash are now being targeted by HM Customs & Excise in the war against money laundering.

They will have to turn away customers wanting to pay about £10,000 or more in cash or euro if watertight paperwork is not in place.

Car dealerships, antique dealers and jewellers are among a number of high-value businesses that regularly accept sizeable cash amounts.

That practice must now end unless bosses have signed up to strict money laundering regulations.

Anyone flouting the rules, which are designed to stop goods being sold or exchanged by criminals for untraceable cash, face jail or hefty fines.

Malcolm Bradshaw, the regional spokesman for the Association of Chartered Certified Accountants, spelt out the implications.

He said: "From today, businesses like car dealers, jewellery or antiques dealers, which accept large cash payments, now have a tricky choice to make.

"Either they sign up for the whole panoply of the money laundering regulations - which have been troubling professional accountants and lawyers - or they will have to turn away customers wanting to pay in cash.

"How many busy sole traders will fancy being their own money laundering officer, and paying an annual fee for the privilege?"

Affected businesses who wish to continue to accept cash payments must appoint a money laundering officer, document their anti-money-laundering policies and procedures and introduce customer identification procedures.

Having registered with HM Customs & Excise they will also be targets for Customs visits, said Mr Bradshaw.

He added: "Customs are now making money-laundering procedures part of their routine monitoring visits.

"So the VAT man will be checking up on just how all these businesses who have recently registered are actually following their procedures in practice.

"There is no alternative to either registering with Customs, or making a firm policy decision to not accept cash payments.

"Dealers who just carry on as before will find themselves in breach of the new money laundering laws and will face prison or heavy fines."