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In the European Union, purchases worth more than €10,000 will no longer be allowed to be paid in cash. This is the unanimous approval of the European Parliament and negotiators from EU countries on this cap and other measures. The move is aimed at taking stronger action against money laundering, terrorist financing and sanctions evasion. However, countries indicated that Member States had the option of setting a lower ceiling.
In Germany, there are currently no restrictions on the use of banknotes and coins for payment. Anyone who wants to pay more than €10,000 in cash must identify themselves and prove the source of the funds. It is the dealer’s obligation to record and keep this information.
During negotiations between EU countries, Germany criticized the cap. The rest of the international community has already imposed the cap.
Under the new rules, EU regulations will be fully harmonized. Potential loopholes for criminals to use the financial system to launder money or finance terrorist activities will be closed.
The new law will give more powers to the German Customs-based Financial Investigation Unit to analyse and expose money laundering and terrorist financing cases, as well as suspend suspicious transactions, the parliament said.
(Source: t-online Image source: freepik)
