EU Implements New Cash Prohibition, Imposing Penalties
The European Union (EU) has implemented a new, strict measure to regulate cash transactions, setting a maximum limit of €10,000 per transaction across all member states. This change, effective from July 2027, aims to thwart criminals and combat money laundering.
Under Regulation (EU) 2024/1624, the new cash limit applies to all forms of cash, including coins and bills. No country can set a limit higher than this €10,000 ceiling. Violating this limit, such as by splitting payments to bypass the cap, is prohibited and can lead to penalties which vary by country but generally involve fines or legal consequences for breaching cash payment regulations.
The Anti-Money Laundering Authority (AMLA), based in Frankfurt am Main, has been established to support this reform. The AMLA will ensure that member states are implementing all the regulations from the EU's anti-money laundering package and will monitor compliance, enforcing penalties for violations.
Prior to this change, there was no legal cap on cash transactions in the EU. This new measure is a response to the issue of money laundering and is part of a broader effort to balance the continued use of cash with anti-fraud and financial security objectives.
For private individuals, the new limit does not apply to private transactions, meaning they can still handle more than €10,000 in cash without consequence. However, buyers paying a large sum in cash (more than €10,000) are required to present an ID, and if more than €10,000 is deposited, banks also require a source of funds statement.
In summary, the new cash limit approved by the EU caps cash payments at €10,000. This limit applies across all member states and will take effect in July 2027. The implementation of this regulation is a significant step towards combating money laundering in the EU.
