The European Union is preparing to make breakthrough changes to the cash transaction system. From 2027 will apply a single cash payment limit of EUR 10 000 (approximately PLN 42,5 thousand). This is part of an EU strategy to combat money laundering and terrorist financing. What do these changes mean for entrepreneurs and consumers?
Single limit across the European Union
The fresh rules aim to harmonise the rules in force in different associate States. Currently, the cash payment limits vary importantly between countries. For example:
- France already in usage EUR 1000 limit,
- Spain allows cash payments to EUR 2500,
- W Poland the limit for companies is PLN 15,000 (about EUR 3,500) and for private individuals there are no specified restrictions.
The introduction of a uniform limit is intended to prevent the transfer of illegal transactions between countries with different regulations. It means that even countries like Austria is Luxembourgwhich have not so far had specified restrictions, will gotta comply with the fresh rules.
New verification requirements
Another crucial change will be the work to verify identity in excess of payments EUR 3000 (approximately PLN 12.8 thousand). This means that:
- Vendors will gotta check client data on cash transactions for larger amounts.
- Such transactions will be subject to greater supervision, reducing anonymity in cash flow.
The introduction of this kind of mechanics aims to increase financial transparency and obstruction of criminal activity.
How will fresh regulations affect Poland?
Currently in Poland, the cash payment limit applies only to entrepreneurs and amounts to PLN 15,000. For private individuals, there are no restrictions, which means that consumers can make any cash payment.
The changes made by the EU mean that:
- Private will besides be covered by a limit of EUR 10 000 (42.5 thousand).
- Companies they will gotta adapt to the fresh rules, which may require changes in the method of accounting.
For many entrepreneurs, this may mean more usage of electronic payment systems, specified as bank transfers or card payments.
Why is the European Union making these changes?
The aim of the fresh regulation is to combat financial crime, including:
- Money laundering,
- Financing terrorism,
- Tax avoidance by misuse of cash payments.
According to data from the European Commission, differences in laws between associate States were exploited by criminal groups that carried illegal transactions to countries with little restrictive regulations.
What are the consequences for breaking the rules?
The European Union provides for severe sanctions for non-compliance with the fresh limits on cash payments. associate States will be required to impose appropriate financial penalties, which may amount to up to EUR tens of thousands for serious infringements.
What's next?
To 2027 All EU associate States will gotta adapt their government to the fresh regulations. This gives both entrepreneurs and consumers time to prepare for change. However, experts already encourage:
- Increasing the usage of electronic payments,
- Analysis of past financial practices,
- Consciously planning transactions that may be subject to fresh regulations.
Read more:
This is the authoritative end of the cash. fresh payment limit confirmed
