1/19/2024 5:59 pm (current 1/19/2024 5:59 pm)
The European Union has decided to ban cash payments exceeding 10,000 euros in order to reinforce the fight against black money and money laundering.
Cash payments exceeding 10,000 euros will be banned in the European Union in the future. On Thursday morning, negotiators from the European Parliament and Member States agreed on EU-wide anti-money laundering regulations, which are intended to plug loopholes in national laws. Luxury goods dealers must also verify the identity of their customers and report suspicious transactions to authorities.
The strictest rules will apply, among other things, to the trade in jewelry, luxury cars, private planes and ships. According to the agreement, financially strong football clubs such as FC Bayern Munich and Borussia Dortmund will also be subject to the new law from 2029. Professional football, with its billions of investments from third countries, it is seen as a possible gateway to money laundering in Europe.
Stricter monitoring
Authorities should also more closely monitor the cryptocurrencies and banking transactions of the super-rich with assets of at least 50 million euros. Business owners with at least a quarter of the shares must be registered across the EU. This is intended, among other things, to prevent Russian oligarchs from being able to circumvent EU sanctions as a result of the attack on Ukraine.
“Very late”
Stricter anti-money laundering rules for cryptocurrencies, banks, oligarchs and football clubs are “long overdue”, emphasized European Parliament negotiator Eero Heinäluoma. A uniform framework at EU level fills national gaps. “So far, member states have lost billions of euros,” explained the Finnish social democrat.
For liberal EU MEP Roman Haider, this is “another step towards the imminent abolition of money”, as the Parliamentary Freedom Club explained in a press release. “While cash limits are being increasingly restricted, the ECB is already planning to introduce the digital euro, which will officially complement cash, but could also replace it,” said Haider.
Anti-Money Laundering Authority
The law still needs to be formally approved by the European Parliament and Member States. National authorities will be responsible for monitoring the new rules, coordinated by a new European anti-money laundering authority (Amla). Amla's seat will be determined this year and Vienna has also applied. (APA)