Customs Union: EU steps up its rules on cash controls to fight money laundering and terrorist financing
New rules come into force tomorrow, 3 June, which will improve the EU’s system of controls of cash entering and leaving the EU. As part of the EU’s efforts to tackle money laundering and to cut off sources of terrorist financing, all travellers entering or leaving EU territory are already obliged to complete a cash declaration when carrying €10,000 or more in currency, or its equivalent in other currencies, or other means of payment, such as travellers’ cheques, promissory notes, etc. As of this Thursday, however, a number of changes will be implemented that will further tighten the rules and make it even more difficult to move large amounts of undetected cash. First, the definition of ‘cash’ under the new rules will be extended and will now cover gold coins and certain other gold items. Second, customs authorities will be able to act on amounts lower than €10,000 when there are indications that cash is linked to criminal activity. Finally, customs authorities may also now request that a cash disclosure declaration be lodged when they detect €10,000 or more in cash being sent unaccompanied via post, freight or courier. The new rules will also ensure that the competent authorities and national Financial Intelligence Unit in each Member State have the information they need to track and tackle movements of cash that could be used to fund illegal activity. The implementation of the updated rules mean that the latest developments in the Financial Action Task Force’s (FATF) international standards on combating money laundering and terrorism financing are reflected in EU legislation. Full details and a factsheet on the new system are available here.
