Answer to Written Question: Abolition of cash
(Source: European Parliament)
Answer given by Ms McGuinness
on behalf of the European Commission
On 20 July 2021, the Commission adopted a package of legislative proposals in the area of anti-money laundering and countering the financing of terrorism (AML/CFT). The introduction of an EU-wide upper limit to large cash payments of EUR 10 000 is part of this comprehensive package.
As any legislative proposal adopted by the Commission, this initiative has been subject to scrutiny of its justification in terms of subsidiarity and proportionality, as well as of its economic and social impacts, in line with the Commission’s better regulation policy. Impacts on citizens and fundamental freedoms have been assessed in this context and it was concluded that the proposal would not have any significant effect on the freedom of EU citizens.
The limit applies to any payment received by persons trading in goods or providing services in cash above EUR 10 000, regardless of whether the payment is made in one single instalment or in several ones. Payments in cash between individuals acting in their private capacity are not affected by this limit
Regarding crypto assets, international standards in the field of AML/CFT require the traceability of crypto asset transfers above EUR 1 000. Such traceability includes the collection of detailed information on the parties to the transfer. The Commission is considering ways to ensure that Union legislation aligns with these standards. No similar traceability requirement is envisaged for cash payments.