Applies in three years

EU sets cash ceiling – with one exception

A cash limit of 10,000 euros will apply in the EU in future. The member states decided on this limit and other rules against money laundering and terrorist financing on Thursday, according to a press release. However, there is to be one crucial exception.

The upper limit does not apply to transactions between private individuals, none of whom deal professionally with the respective object of sale. The following rule applies to other transactions: anyone wishing to pay amounts over 10,000 euros in cash must identify themselves and prove where the money comes from.

The retailer is obliged to record and retain this information. The cash limit will therefore apply for three years. Governments can also set a lower limit.

Significantly stricter regulations
The new regulations also give financial investigation agencies more powers to analyze and detect cases of money laundering and terrorist financing and to suspend suspicious transactions.

In addition to banks and casinos, retailers of luxury goods and providers of crypto-assets above certain sums will also have to check their customers and report suspicious activities. Under certain conditions, professional football clubs and agents will also be obliged to monitor transactions.

The EU Parliament had already cleared the way for the new regulations at the end of last month. The legal texts must now be published in the Official Journal of the EU before they can come into force.

New authority planned
A new authority is planned in Frankfurt to monitor the rules: the "Anti-Money Laundering Authority" (AMLA). It is due to commence operations in the middle of next year and will, among other things, coordinate and support the national supervisory authorities. Frankfurt won out against eight other European capitals for the location.