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BRUSSELS, Oct. 18 — New European Union cash payment rules aimed at combating money laundering and terrorist financing will take effect in 2027, introducing restrictions on large cash transactions involving businesses while leaving private sales largely unaffected.
Under the new regulations, commercial retailers and service providers will generally be prohibited from accepting cash payments of €10,000 or more from July 10, 2027. However, the limit will not automatically apply to transactions conducted exclusively between private individuals.
This means that a person selling a used car to another private individual, for example, may still be able to receive a large cash payment, provided both parties are acting in a private capacity. The restrictions can apply when a company or a commercial seller is involved in the transaction.
Authorities have also made clear that splitting a large payment into several smaller installments will not necessarily circumvent the rules. If multiple payments are linked to the same transaction, they will be treated as a single payment and added together when determining compliance with the regulations.
Separate customer verification requirements will also apply to certain cash transactions. In some cases, businesses may be required to verify a customer’s identity for cash payments of €3,000 or more. However, this requirement does not mean that all cash payments above that amount will be prohibited.
The new measures form part of the EU’s broader efforts to strengthen anti-money laundering controls and improve the detection of illicit financial activity.
Consumers planning to pay or receive larger sums in cash are advised to determine whether a transaction qualifies as a private sale or involves a commercial entity, as different rules may apply depending on the nature of the deal.
- source: heute.at/picture: pixabay.com
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