To counter money laundering and terrorist financing, the European Union has reached a partial agreement, imposing a €10,000 cap on cash payments. The agreement, struck between member states and the European Parliament, aims to safeguard European citizens and the EU financial system from illicit financial activities.
Under the new regulations, entities involved in financial services, banking, real estate agencies, asset management firms, casinos, and merchants will be obligated to adhere to the cash payment limit. Additionally, these entities will be required to verify the identity of individuals making cash payments ranging from €3,000 to €10,000.
While member countries retain the flexibility to set lower ceilings for manual payments, an emphasis on enhanced monitoring of high-net-worth individuals has been introduced at the insistence of Members of the European Parliament (MEPs).
Expanding the scope of oversight, the interim agreement now encompasses a significant portion of the cryptocurrency sector. Crypto service providers will be mandated to verify customer identities for transactions equal to or exceeding €1,000.
Starting from 2029, the regulatory net extends to professional football clubs and agents, classifying them as obliged entities. This designation requires these entities to verify customer identities, monitor transactions, and report any suspicious money transfers to their respective country's financial intelligence services.
The agreement grants member countries the authority to exclude football clubs and agents from their national lists if they are deemed not to pose a risk.
National financial intelligence services and other competent authorities will gain access to information on ownership, bank accounts, and land and property registries. These authorities will also oversee the transfer of ownership for certain luxury goods, establishing thresholds at €250,000 for cars and €7.5 million for yachts and aircraft.
The comprehensive measures outlined in the agreement reflect the EU's commitment to fortifying its financial system against illicit financial activities, with a particular focus on modernizing regulations to encompass emerging sectors like cryptocurrency.
