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Fight Against Cash Recycling in the EU: New Rules to Strengthen Battle Against Money Laundering and Terrorism Financing
On 23rd October the European Parliament and the Council adopted the new regulation 2018/1672 which was published in the Official Journal of the European Union on 12 November (series L 284).
The central point of the new regulation is the definition of new requirements for controls on cash entering and leaving the European Union. It revokes the previous regulation 1889/2005 and specifies the minimum rules, allowing States to establish further controls.
In particular, the regulation gives a new definition of “cash”, including not only banknotes, but also cheques, traveller’s cheques, prepaid cards, as well as gold. Furthermore the regulation includes cash which is sent by post, courier or freight shipment. The new rule defines that every citizen entering or leaving the EU with more than €10.000 in cash (remember the new definition of cash), is obliged to declare it to the customs authorities.
There is no difference, if a person is carrying the cash personally, in the luggage or by means of transport used to cross external borders. The relevant authorities have the power to ask for a disclosure declaration, if the cash is unaccompanied and suspected. Please note furthermore, that in case of suspicion regarding criminal activities, the Member States are allowed to withhold money to a maximum of 30 day. Moreover, it is very important that members States and third States will exchange information to combat money laundering and terrorist financing.
The regulation enters into force on 20 December 2018 (as the twentieth day following that of its publication in the Official Journal of the European Union) and shall apply from 3 June 2021, except art. 16 (Implementing acts) which applies from 2 December 2018.
Massimiliano Desalvi, partner of Interconsulting for more than 10 years, provides consulting and he is experienced in litigation in the areas of civil and commercial law, bankruptcy and insurance legislation.
He coordinates the team of lawyers and young professionals in order to meet and respond to the challenging client’s needs concerning legal matters or disputes.