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European Union to Implement Cash Payment Ban Over €10,000 in 2027
The European Union (EU) will introduce a ban on cash payments exceeding €10,000 starting July 10, 2027. This regulation aims to combat money laundering and terrorist financing across all member states. In addition to the cash limit, transactions over €3,000 will require identity verification, increasing the documentation needed for cash transactions.
Under Regulation (EU) 2024/1624, businesses will be prohibited from accepting cash payments above the €10,000 threshold. The regulation also addresses linked payments, meaning that splitting a larger purchase into smaller cash installments will not circumvent the rule. While cash transactions below €10,000 remain permissible, those above €3,000 will necessitate customer due diligence, including identity checks.
Certain transactions are exempt from these restrictions, such as private exchanges between non-professional individuals and payments made at banks or electronic money issuers, which already have their own identification requirements. Member states retain the authority to impose stricter limits, as seen in Spain, where a €1,000 cash limit will continue to apply.
The regulation was adopted in May 2024, allowing for a multi-year transition period before its implementation. This uniform cap aims to standardize cash transaction rules across the EU, addressing the inconsistencies that have existed among member states. Businesses dealing in high-value goods may need to adjust their payment processes to comply with the new regulations.
Source: KLEA News