Filenews 3 June 2021 - by Theano Thiopoulou
New data is in force from today for those travelling within the EU, as they are obliged to declare cash when carrying more than €10,000 in cash or gold coins or gold bars. As part of the EU's efforts to combat money laundering and the exclusion of sources of terrorist financing, changes will be implemented from today, making existing regulations even stricter and transferring large sums even more difficult.
What's changing from today
● The definition of "cash" in the rules will be extended to include some other valuables. This means that from today those travelling and carrying €10,000 or more (or the equivalent amount in other currencies) must submit a cash statement. The new definition of cash when entering or leaving an EU country includes: Banknotes and coins (including currency that is out of general circulation but can still be exchanged at a financial institution or central bank), negotiable instruments such as cheques, traveller cheques, banknotes and payment orders, gold coins with a gold content of at least 90% , gold bars, nuggets with a gold content of at least 99.5%.
● Customs authorities may also request that a cash declaration be submitted when they detect €10,000 or more in cash (as included in the new definition) sent by post or courier (unaccompanied cash). If requested, this declaration must be made within 30 days by the consignee, the sender or an appointed representative of the two.
● The new rules also allow customs authorities to act on amounts of less than €10,000 where there are indications that the cash is linked to criminal activity.
If no declaration (or notification statement, when requested in the case of unaccompanied cash) is submitted for cash of €10,000 or more, or if there is evidence of a link to criminal activity, the cash may be held and the holder may face penalties. The cash statement must record detailed information on the financial origin and future use of the cash.
How to complete the declaration
Member States shall use a harmonised declaration form, to be completed in one of the languages available for the country in which the traveller enters or leaves. If someone transfers cash on behalf of a company, the company name must be mentioned in the statement. For people travelling in groups, the limit of €10,000 applies to each individual. The cash declaration obligation also applies to minors through their parents or legal guardians, as well as to persons in custody through their legal representative. If someone is not sure whether to make a declaration or not, they should seek advice from the competent authorities at the point of entry or exit of the EU.
Penalties for non-compliance and provision for data retention
In addition to the possible detention of such cash (if a person does not submit a declaration (or notification statement, when requested in the case of unaccompanied cash) for cash of €10,000 or more, or if there is evidence of a link to criminal activity, each Member State may impose its own penalties, which must be 'effective, proportionate and dissuasive'.
Some EU countries also have national provisions governing cash transferred between EU Member States or even within a country. Although these provisions are not part of EU rules, the Commission strongly recommends that those travelling check what their obligations are.
The relevant authorities will be able to store the information provided in cash statements entering or leaving the EU for a period of five years. Member States will also exchange information on cases of non-declaration and cases of declarations where there is evidence of linking to criminal activities (including amounts below €10,000). Risk information and risk analysis results will also be exchanged anonymously. In some cases, information may be communicated to the European Commission, the European Public Prosecutor's Office and Europol.
