EU Sets Cash Payment Limit of €10,000 to Combat Money Laundering

Last week the European Union came to an agreement to limit cash payments to €10,000 in an effort to combat money laundering.

The rules still need to get approval from members of the European Council and also be voted on by the European Parliament, which means that they could take years to come into force.

Hopes are that the rules will but a squeeze on illegal transactions and money laundering, including through cryptocurrency, and assist financial investigators by enabling them to suspend suspicious transactions.

If passed, providers of cryptocurrency and various crypto-assets will be required to conduct better monitoring of transactions that are valued at €1,000 or above.

For Greece and for several other European countries, the new rule is not expected to face resistance, as they already have lower limits for cash transactions. For example, France has a €1,000 limit and Greece, where tax evasion is many times higher than Germany and Austria, has a limit of just €500.

The new rule however is expected to make waves in Germany, which is known for its limited use of credit cards and preference for cash, even for big purchases like cars.