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The European Parliament and member states adopted a measure last January to limit cash payments within the European Union, after two years of intense negotiations. From now on, cash transactions will be capped at 10,000 euros regardless of the country. This decision aims to harmonize existing regulations in the 27 EU countries and to strengthen the fight against the financing of terrorism.
The main objective of this legislation is to detect and limit doubtful transactions on the Old Continent. Indeed, certain countries such as Germany and Austria had until now no limit on amount: one could pay millions of dollars there. ;euros in cash legally.
Belgian Finance Minister Vincent Van Peteghem said the agreement “will ensure that fraudsters, organized crime and terrorists will no longer have the ability to legitimize their profits through the financial system” ;. In addition to limiting cash payments, the new regulations also strengthen rules against money laundering and terrorist financing.
What about France?
If Europe limits cash transactions to 10,000 euros, France is more restrictive on certain points. In this case, you cannot pay more than 1,000 euros in cash to a professional. In other words, if you want to pay for a Chanel bag or a vehicle in a dealership, you will have to use another payment method.
On the other hand, payment in cash between individuals is not limited: you can therefore technically pay 15,000 euros in cash to buy a car from opportunity on Le Bon Coin. Please note, a written document is however necessary for more than 1 500 euros of cash transaction to prove the payment. Obviously, we advise you to use a bank check for transactions of such an amount.
Other information, you can legally hold as much cash as you want at home, without proof. It is considered that you can very well do without a bank to keep your money, although a home is not always the most secure place to keep large sums.
An extended application
In addition to cash payments, the new rules dictated by the ?EU will also apply to banks, real estate agencies and even casinos. These entities must be able to identify their customers – and the asset owners behind opaque financial arrangements. In addition, the application of these rules will be extended to the cryptocurrency sector in order to ensure increased traceability, but also to luxury products such as jewelry or watches.
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