EU Implements Cash Ban with Financial Penalties
The European Union has approved a new measure to limit cash transactions, setting a new cash limit of 10,000 euros that will come into force on February 1, 2026. This regulation aims to enhance transparency and combat money laundering and tax evasion.
Under this new limit, individuals or businesses will not be able to handle more than 10,000 euros in cash for any transaction, including coins, single bills, and multiple bundles. However, private individuals can still handle more than 10,000 euros in cash for private transactions without repercussions.
Buyers paying a large sum in cash (more than 10,000 euros) will be required to show ID. Violations of this cash payment limit may result in administrative fines or other sanctions imposed by the respective member states. The exact penalties vary by country but typically include financial penalties proportional to the amount exceeded or the nature of the offense.
This new cash limit is part of the EU's broader strategy, which also involves legal protections for euro banknotes and coins within the new Legal Tender of Cash Regulation. This regulation complements the upcoming digital euro initiative to ensure cash remains an accessible and secure payment option across the eurozone. The goal is to make cash fit for the future and coexist with digital forms of the euro, protecting monetary sovereignty.
The Anti-Money Laundering Authority (AMLA), based in Frankfurt am Main, has been active since July 2025 to support the new reform. The AMLA oversees whether member states implement all regulations related to the new cash limit.
The change is facing criticism from certain sectors, such as the craft industry and used car dealers, who argue that the new limit will impose an onerous documentation requirement, adding extra burden for small businesses. Despite these criticisms, the EU remains committed to the new measure, which is aimed at combating money laundering.
[1] Legal Tender of Cash Regulation [3] Digital Euro Initiative
Note: This article is intended to provide factual information based on the provided bullet points. For the most accurate and up-to-date information, readers are encouraged to consult official EU sources.
- The new cash limit of 10,000 euros, part of the EU's broader strategy, is set to combat money laundering and tax evasion, and will be overseen by the Anti-Money Laundering Authority (AMLA).
- Buyers paying more than 10,000 euros in cash will be required to show ID, with violations potentially resulting in administrative fines or other sanctions imposed by the respective member states.
- The Legal Tender of Cash Regulation, which provides legal protections for euro banknotes and coins, complements the upcoming digital euro initiative to ensure cash remains an accessible and secure payment option alongside digital forms of the euro.
