EU tightens cash payment rules to combat money laundering
The EU will limit cash payments to 10,000 euros (approximately £9,000) and introduce mandatory customer verification for expenditures above 3,000 euros (approximately £2,600). The Council of the European Union has adopted new regulations to prevent money laundering.
"The new and stricter rules will strengthen our systems in the fight against money laundering and terrorist financing," said Belgian Finance Minister Vincent Van Peteghem.
Earlier, the European Parliament adopted laws to enhance the EU's toolkit for fighting money laundering and terrorism financing.
Cash payment limits in the EU
What will change after the EU's decision? When a business is one of the parties to the transaction, cash payments will only be possible up to 10,000 euros. Additionally, anyone paying in cash above 3,000 euros for various services or products will be subject to identification.
The changes will now be published in the Official Journal of the European Union. They will take effect immediately, but member states have three years to adapt to the new regulations. In mid-2025, a new Anti-Money Laundering Authority (AMLA) will start operations in Frankfurt.
This will ensure that fraudsters, organised crime and terrorists will have no space left for legitimising their proceeds through the financial system, added Vincent Van Peteghem.
Fear of surveillance
Following the European Parliament's decision, numerous comments emerged regarding the potential for surveillance. Some internet users fear the new changes and believe the EU's plans will eliminate cash.
"For several years, we have been losing our privacy, both when we post pictures on social media and unconsciously when our phones log into base stations or when we walk around the city and are recorded by surveillance for security purposes. Therefore, surveillance is not an issue. It is part of technological progress," said Robert Łaniewski, president of the Cashless Payments Development Foundation, in an interview with money.pl.
Aleksander Pawlak, president of Tavex, a company dealing in precious metals and currencies in over 60 countries, also assessed that "surveillance is excluded." He added, "However, the obligation of identification for transactions above 3,000 euros is concerning for cash operations. Hardware or electronics stores may no longer accept cash for larger purchases."
