EU Commission answer on concerns over introduction of cash limit

EN

E-000420/2024

Answer given by Ms McGuinness on behalf of the European Commission (29.3.2024):

“The prevention of money laundering and terrorist financing (AML/CFT) deals with criminal behaviours. It is therefore not possible to provide conclusive evidence of effectiveness of a cash limit. The impact assessment1 accompanying the legislative package of 20 July 20212 analyses this issue and supports the option proposed by the Commission and retained by co- legislators. It concludes that it provides a more harmonised approach across the internal market, reduces the inefficiencies of the current AML/CFT framework, preserves the legal tender status of euro banknotes and does not result in disproportionate effects for citizens.

As explained by the Commission in its reply to question E-001048/20233, the introduction of a limit to large cash payments is not expected to materially impact citizens’ financial privacy given that the average value of a point of sale or a person-to-person payment in the euro area4 is EUR 25,55. In addition, as indicated by the Commission in its reply to question E- 001213/20225, data protection rules apply to checks performed by financial sector operators in the context of business relationships with their clients. These rules ensure proportionality of data processing, including through data minimisation.

The impact assessment accompanying the legislative package of 20 July 2021 considered the option of introducing an enhanced control to ensure that traders in goods apply AML/CFT measures correctly. However, this option was discarded because it would have required significant additional human supervisory resources across the EU, while not resulting in Financial Intelligence Units receiving significantly more useful reports or preventing illegally acquired goods from leaving the country.”

1 SWD(2021) 190 final.

2 https://finance.ec.europa.eu/publications/anti-money-laundering-and-countering-financing-terrorism-legislative-package_en

3 https://www.europarl.europa.eu/doceo/document/E-9-2023-001048-ASW_EN.html

4 Taking cash and non-cash payments together.

5 https://www.europarl.europa.eu/doceo/document/E-9-2022-001213-ASW_EN.html