European Union It imposes a single cap on large cash transactions as part of its strengthened efforts to combat money laundering and terrorist financing. From 10 July 2027, businesses in all 27 member states will no longer be allowed to accept or arrange cash payments exceeding €10,000 for goods or services through a single agreement or multiple linked transactions. transactions.
This new rule forms a key element of Regulation (EU) 2024/1624, a directly applicable law that replaces the hodgepodge of previous directives with harmonized requirements.
The aim is to reduce the attractiveness of cash for illegal activities, as untraceable large sums of money have long been exploited by companies. criminals carrying dirty money or financing terrorism.
By forcing larger business payments to be made through traceable channels such as wire transfers or cards, authorities hope to improve surveillance without overloading day-to-day consumers.
Under the regulation, any trader or service provider doing business with the public must refuse cash above the €10,000 threshold.
Member states retain the flexibility to impose even stricter national ceilings if they wish, and in some countries existing lower limits will remain in place.
However, EUThe wide standard provides a consistent basis across the bloc, closing previous loopholes where criminals could exploit differences between countries.
Important exemptions protect private, non-commercial relationships. Individuals buying or selling items between themselves (for example, a used car sold privately or a personal loan repaid in cash) are exempt from the restriction.
Deposits or withdrawals made directly from: bankspayment institutions or electronic money providers are also exempt; however, larger amounts may trigger reporting requirements to financial intelligence units for pattern analysis.
In addition to the hard limit, the rules introduce enhanced checks at a lower threshold. Occasionally for cash transactions If it amounts to €3,000 or more, businesses must at least identify and verify the customer’s identity.
This measure applies even below the €10,000 limit and aims to create better records while remaining proportionate to the risk.
If any suspicion of inaccuracy arises, full customer due diligence obligations come into play.
Cash limit part of broader 2024 plan AML The package also covers crypto-asset service providers, beneficial ownership transparency and the creation of a new EU Anti-Money Laundering Authority.
By moving from directives (requiring transposition into national legislation) to a regulation (directly binding), EU It looks for greater uniformity and faster execution.
The main provisions, including cash rules, will apply from 10 July 2027. businesses and there is time for consumers to adapt their payment habits.
Critics argue that this change could upset people who rely on or prefer cash, especially in rural areas or older populations with limited access. digital banking.
Supporters note that modern payment alternatives are widely available and that the measure targets only high-value commercial products. opportunities It is the most vulnerable to abuse.
European Commission It will review the €10,000 threshold by 2030 to assess whether adjustments are necessary.
new frontier to represent A pragmatic step towards a more transparent structure financial system. While it doesn’t ban cash entirely, it significantly raises the bar for its use in larger business transactions, aligning with the EU’s long-term strategy to address the illicit use of money. finance It’s harder to hide.
