Anti-alcohol fraud scheme goes live in UK

HM Revenue and Customs (HMRC) has officially launched a scheme designed to crack down on the availability of illicit alcohol in the UK.

Following initial delays due to “technical issues”, the Alcohol Wholesaler Registration Scheme came into effect on 1 January as part of the government’s bid to tackle the sale of alcohol on which duty has not been paid.

The scheme involves officials conducting a series of “rigorous checks” on wholesale traders.

All traders that sell alcohol to other companies are required to sign up to the scheme and can apply between 1 January 2016 and 31 March 2016. In 2017, the initiative will also provide a facility for retailers to check whether their suppliers are approved.

HMRC said that new criminal and civil sanctions will be introduced for both wholesalers and trade buyers caught purchasing alcohol from non-registered wholesalers.

Following a string of raids on independent retailers across the UK between 2012 and 2013, authorities revealed that illegal alcohol products on which UK duty has not been paid is costing the government £1.2 billion in lost revenue each year.