Purchases worth more than 10,000 euros will soon no longer be allowed to be paid for in cash across Europe. The European Parliament and EU states have taken measures to take stronger action against money laundering.
Cash payments of more than 10,000 euros are to be banned in the European Union in the future. Negotiators from the European Parliament and member states have agreed on anti-money laundering regulations that are intended to close loopholes in national laws.
Luxury goods dealers must also check the identity of their customers and report suspicious transactions to the authorities. The stricter rules will apply, among other things, to the trade in jewelry, luxury cars, private planes and ships.
The authorities should also monitor cryptocurrencies and the banking transactions of the super-rich with assets of at least 50 million euros more closely. Owners of companies with at least a quarter share must be registered across the EU. This is intended, among other things, to prevent Russian oligarchs from being able to circumvent the EU sanctions as a result of the attack on Ukraine.
Rules will soon also apply to professional football
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 in investments from third countries, is seen as a possible gateway for money laundering in Europe.
Stricter anti-money laundering rules for cryptocurrencies, banks, oligarchs and football clubs are “long overdue,” emphasized European Parliament negotiator Eero Heinäluoma. “So far the member states have lost billions of euros,” explained the Finnish Social Democrat.
In Germany there is currently no limit for paying with notes and coins. Anyone who wants to pay amounts over 10,000 euros in cash must identify themselves and prove where the money comes from. The dealer is obliged to record and store this information. Upper limits already apply in other EU countries.
AMLA headquarters in Frankfurt?
Members of the Union are critical of parts of the new regulation, such as the upper limit for cash payments. “The fight against money laundering should not be confused with the fight against cash,” explained CSU European MP Markus Ferber. In addition, the new regulations for football clubs are “completely arbitrary”.
The European Parliament and member states still have to formally approve the law. National authorities will be responsible for monitoring the new rules, coordinated by a new European anti-money laundering authority (AMLA). The headquarters of the AMLA will be determined this year, and the federal government wants to bring the money laundering investigators to Frankfurt. Competitors include Rome, Luxembourg and Madrid. The new EU requirements give AMLA the opportunity to intervene if there are deficits in individual EU states.
Thomas Spickhofen, ARD Brussels, tagesschau, January 18, 2024 5:43 p.m