EU Members Plan Introduction Of Cash Controls To Stamp Out Money Laundering

by Ulrika Lomas, Tax-News.com, Brussels

04 July 2002

The European Commission is planning to introduce new controls on cash entering and leaving EU member states in an effort to clamp down on money laundering within the 15 nation bloc.

The EU Money Laundering Directive stipulates that credit and financial institutions within the European Union are obliged to properly identify their customers at the start of their business relationship, when a single transaction (or linked transactions) equal more than 15,000 euros, or when money laundering practices are suspected.

However, the planned cash controls - which have been sent to the EU's Council of Ministers and the European Parliament for consideration - would extend this directive, meaning that travellers entering or leaving the EU would be obliged to sign a written statement if they are carrying more than 15,000 euros in cash or goods of equivalent value.

According to recent reports, under the new proposals the customs authorities of EU member states will be permitted to question people with regard to the source of amounts exceeding this limit, will be empowered to detain the cash for three days. Member states will be required to enforce penalties for travellers who failed to declare the assets journeying with them.

Recommended