EU prepares to limit cash payments to 10 thousand euros

The member states of the European Union (EU) have agreed to limit cash payments to 10,000 euros and to strictly monitor crypto transactions of more than 1,000 euros.

The European Council announced that member states agreed in negotiations on the new regulation that will bring strict rules to the financial system to prevent money laundering and terrorist financing.

Consequently, the scope of the existing regulatory framework will be expanded and the gaps will be closed.

Stricter rules will apply to financial transactions in EU member states.

PAYMENTS OVER 10 THOUSAND EUROS WILL BE PROHIBITED

To make it more difficult for criminals to launder money, large cash payments will be limited in EU countries.

Cash payments greater than 10 thousand euros will be prohibited in EU countries. Member states may impose a limit of less than 10 thousand euros for cash payments.

Money laundering through jewelers will become more difficult.

The EU will be able to extend its rules against money laundering and terrorist financing to the entire crypto industry.

Crypto asset service providers will have to take proper care of their customers. In this framework, cryptographic service providers will need to verify facts and information about their customers.

PRIVACY WILL BE DIFFICULT IN CRYPTO ASSETS

Identity concealment will be even more difficult when trading crypto assets. Cryptographic service providers will have to carry out due diligence with clients who carry out transactions of more than one thousand euros.

Third countries listed by the Financial Action Task Force (FATF), which sets the international standard for the prevention of money laundering, will also be included on the EU list. In this framework, EU black and gray lists will be established to mirror the FATF lists.

After this stage, negotiations will take place between the European Council and the European Parliament (EP) to finalize said regulation.

NO LIMITATIONS CURRENTLY

After the two institutions agree on a common legal text, the regulation will be officially approved and will enter into force.

The EU currently has no restrictions on cash payments. However, many member states set their own borders.

Cash payments can be made up to 1,000 euros in France, 3,000 euros in Italy, Belgium and Portugal, and up to 15,000 euros in Poland.

For payments above these limits, the banking system must be used.

Currently, there is no limit to pay in cash in Germany, but it is necessary to show identification for payments over 10 thousand euros. (AA)