EU to implement cash payment limit

According to official statements, the current agreement supports the removal of money laundering from the EU, with financial investigators receiving increased capabilities of inspection in suspected cases, as well as broader powers to suspend suspicious transactions and accounts. Additionally, the deal supports consistent rules across the EU and it focuses on improving the security of the financial landscape. Currently, the proposals are set to pass through both the European Parliament and also receive approval from the leaders of individual member states and the European Council before they can be established.

Furthermore, during the negotiations, members of the European Parliament (MEPs) ensured that professional football clubs were set to be obliged to verify their customers’ identity, monitor transactions, and report any suspicious dealings to financial intelligence units (FIUs). Functioning as an intermediary between private entities subject to AML regulations and law enforcement agencies, FIUs in member states are intended to receive additional capabilities to detect suspicious activities and suspend transactions, accounts, and business relationships. Also, traders of luxury goods, including precious metals, cars, and yachts, among others, are included under the purview of terms. The provisions require crypto-asset providers to perform due diligence on their customers and report any suspicious activity while ensuring the legitimacy of transactions amounting to EUR 1,000 or more. The agreement increases the number of institutions that have a central role in detecting financial inconsistencies and subjects them to new EU regulations.

The restrictions imposed on cash payments are developed to make it more difficult for criminals to launder dirty money across the EU. The agreement provides member states with the flexibility to impose a lower maximum limit than EUR 10,000 if they require it. Considering the current landscape where money laundering and terrorist financing pose a significant risk to the integrity of the EU economy and financial system, as well as the security of its citizens, the regulatory bodies intend to reduce these threats and support the development of the financial environment.

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