The EU has set a cash limit of 10,000 euros for transactions between private individuals in an effort to combat money laundering and terrorist financing. This limit will apply within three years and may be set lower by individual governments. Exempt from this limit are transactions between private individuals not involved in professional activities related to the item being sold.
While Germany currently does not have a limit for payments with notes and coins, it is required to verify the source of funds for cash payments over 10,000 euros. Austria did not previously have a cash limit. Retailers are obligated to record and store this information for compliance purposes.
The new rules grant financial investigation agencies enhanced powers to analyze and detect money laundering and terrorist financing activities, including suspending suspicious transactions. In addition to banks and casinos, retailers of luxury goods and providers of crypto assets above certain thresholds will be required to verify their customers and report any suspicious activities. Professional football clubs and agents may also be required to monitor transactions under certain conditions.
A new authority known as the “Anti-Money Laundering Authority” (AMLA) is scheduled to start operations in Frankfurt in the middle of next year. This authority will coordinate and support national supervisory authorities in combating money laundering and terrorist financing. The EU Parliament has already approved the new regulations, which must be published in the EU Official Journal before becoming enforceable.
