European Union (EU) institutions have agreed on new rules, including limiting cash payments to 10,000 euros, identifying those who frequently transact between 3,000 and 10,000 euros and strictly controlling crypto transactions over 1,000 euros.
The Council of the EU announced that a new package of regulations negotiated between member states and the European Parliament (EP), which will impose strict rules on the financial system to prevent money laundering and terrorist financing, has been agreed.
Accordingly, the legal framework of the EU financial system will be strengthened to protect against money laundering and terrorist financing.
Financial rules will be harmonized across the EU. Loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system will be eliminated. Cooperation between Member States' financial institutions in this area will be enhanced.
Large cash payments will be banned in EU countries to make it harder for criminals to launder money.
Cash payments exceeding 10 thousand euros will be banned in EU countries. EU member states will be able to set lower limits for cash payments than 10 thousand euros.
Various obliged entities, such as banks, real estate agencies, asset management services, casinos, merchants, jewelers and cryptoasset service providers, will be required to identify, verify and report on the identity of people who frequently make cash transactions between €3,000 and €10,000.
Member states can also add football clubs to the list of obliged entities if they wish.
Anti-money laundering and combating the financing of terrorism rules will be extended to the entire crypto sector.
Crypto trading institutions will be required to verify information about their clients and report suspicious transactions. Crypto service providers will be required to conduct due diligence and report on customers who make transactions of more than 1000 euros.
The regulation will then be approved by the EU Council and the EP, after which it will be published in the Official Journal of the EU and enter into force.
Currently, the EU has no limits on cash payments. However, many member states set their own limits.
Cash payments can be made up to 1000 euros in France, 3 thousand euros in Italy, Belgium and Portugal, and 15 thousand euros in Poland.
Payments above these limits require the use of the banking system.
There is currently no limit for cash payments in Germany, but payments over €10,000 require identification.
