The European Union has enacted a fresh prohibition on the use of physical currency, imposing penalties for violations.

Cash payment limits tightened by EU sparks controversy, with critics arguing...

, and Administrator

2025 September 16 . 1:03 AM

1 min read

EU Imposes Cash Ban with Penalties Enforced

The European Union has enacted a fresh prohibition on the use of physical currency, imposing penalties for violations.

The European Union (EU) is set to implement a new rule regarding cash transactions as part of its anti-money laundering package, effective from July 2027. This change will allow EU member states the possibility to lower the current EU-wide cash payment limit of 10,000 euros for transactions.

Under the new rules, member states can choose to set lower cash transaction limits within their jurisdictions. Countries like Spain have already implemented lower limits, paving the way for other nations to follow suit.

However, the new limit and accompanying documentation requirements have raised concerns among small businesses, the craft industry, used car dealers, and other sectors. They argue that these changes impose a burdensome burden on their daily operations.

Currently, buyers paying such a large sum in cash only need to show their ID. But if more than 10,000 euros is deposited, banks also require a source of funds statement. Violations of these new rules could result in fines or criminal investigations, although the specifics of these penalties have yet to be determined.

Private individuals can continue to use more than 10,000 euros in cash for private transactions without consequences. The Anti-Money Laundering Authority (AMLA), a special EU agency active in Frankfurt am Main since July 2025, will oversee whether member states implement all regulations related to the anti-money laundering package.

This move is part of the EU's broader efforts to combat money laundering and terrorist financing. The AMLA aims to ensure a more coordinated and effective approach across the EU in these matters. As the implementation date approaches, it will be interesting to see how member states adapt to these changes and how businesses adjust to the new cash transaction limits.