European Commission Welcomes Approval Of New Cash Controls

by Ulrika Lomas, for LawAndTax-News.com, Brussels

13 June 2005

The European Commission on Thursday welcomed the European Parliament's approval of a Regulation to introduce an EU-wide approach to controlling cash movements into and out of the EU.

The Regulation will require member states to ensure that travellers entering or leaving the EU through its external borders make a declaration if they are carrying more than €10,000 (or its equivalent in other currencies or easily convertible assets).

Customs authorities will be empowered under the Regulation to undertake controls on people and their baggage and detain cash that has not been declared. Member states will be required to initiate proceedings against people who fail to declare cash over €10,000.

The new legislation will enter into force once the Council confirms its formal agreement to amendments proposed by the Parliament and the Presidents of the Council and Parliament sign the text, and will take effect 18 months after its entry into force.

"This measure will make it more difficult for terrorists to enter or leave the Community with the cash required to finance their illegal actions" explained Taxation and Customs Commissioner László Kovács, continuing:

"A single uncomplicated system of this type will also be fairer to legitimate travellers who will no longer be faced with control measures that vary depending on where they enter or leave the Community"

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