EU to implement cash payment limit

Tuesday 23 January 2024 09:34 CET | News

The European Parliament and the Council negotiators have reached a provisional agreement to reduce money laundering and limit cash payments to a maximum of EUR 10,000. 

As per the information detailed in the press release, the Parliament and Council negotiators’ provisions are part of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) package and are set to be applied by banks and other obliged entities to safeguard the EU internal market from money laundering and terrorist financing. Additionally, the agreement includes an EU-wide limit on cash payments of EUR 10,000, with it intending to ensure compliance with targeted financial sanctions and prevent them from being bypassed.

The EU Parliament and Council negotiators have reached a provisional agreement to reduce money laundering and limit cash payments to a maximum of EUR 10,000.

The EU’s approach to reducing money laundering

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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Keywords: AML, money laundering, transaction laundering, regulation, fraud management, CFT
Categories: Fraud & Financial Crime
Companies: European Parliament
Countries: Europe
This article is part of category

Fraud & Financial Crime

European Parliament

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