New decision: Cash payments above this limit are prohibited
The European Union has approved a new rule that prohibits the use of cash in certain financial transactions, where cash payments exceeding 10,000 euros are no longer allowed, except for some special cases between individuals.
The decision, which came as part of broader efforts to combat money laundering and terrorist financing, was approved by negotiators from the European Parliament and EU member states, according to the "Zeit Online" platform. According to the European Council, the aim of this step is to restrict the use of cash in large transactions that may facilitate illegal activities.
The new law allows member states of the union to set limits below 10,000 euros if they deem it appropriate. However, private transactions between individuals are exempt from this prohibition, provided that neither party is engaged in a profession related to the sold commodity. For example, a person can still buy a car from their neighbor in cash, unless the neighbor is a professional car dealer. In case of violation of these rules, the exact penalties that may arise have not yet been determined.
The law does not only cover large cash transactions, but also imposes additional restrictions on certain business activities, especially those related to luxury goods such as jewelry, luxury cars, private jets, and yachts. Parties involved in any cash transaction ranging from 3,000 euros to 10,000 euros must verify the identity of the transacting parties.
Iiro Hinaluoma, the chief negotiator from the European Parliament, stated that these laws have been "necessary for a long time," pointing out that member states lose billions of euros annually due to money laundering.
These laws will also be applied, starting from 2029, to the world of professional football, as the European Union considers it a potential area for the infiltration of illicit funds, especially through massive investments coming from countries outside the union. Major clubs such as FC Bayern München and Borussia Dortmund are expected to be affected.
Nevertheless, there are criticisms within political circles, as the European Parliament member from CSU, Markus Ferber, warned against confusing the fight against money laundering with attacking the use of cash, considering the expansion of the law to include football as "completely random."