The European Union will ban cash payments above €10,000 starting July 10, 2027, in a sweeping anti-money laundering measure that will affect commercial transactions across the bloc's 27 member states.
The regulation, adopted in 2024 under EU Anti-Money Laundering Regulation 2024/1624, requires that commercial transactions exceeding the threshold use traceable payment methods such as bank transfers or card payments. According to The Portugal News, the measure applies to businesses and professionals selling goods or services but excludes private transactions between individuals.
To understand today's headlines, we must look at yesterday's decisions. The regulation represents the culmination of years of effort by European authorities to close loopholes that facilitate money laundering, tax evasion, and terrorist financing. Brussels has long argued that large cash transactions are disproportionately used for illicit purposes and that harmonizing limits across member states will prevent criminals from exploiting jurisdictional differences.
The €10,000 threshold represents a maximum limit, not a minimum. Individual member states may impose stricter national limits if they choose. Several countries, including France, Spain, and Italy, already maintain lower cash payment limits under existing legislation.
Transactions between €3,000 and €10,000 will face "tighter checks for occasional cash transactions" with identity verification requirements in some cases, though the exact implementation will vary by member state.
European officials emphasize the measure is not an attempt to eliminate cash entirely. The regulation specifically targets large commercial transactions while preserving cash for everyday use and private exchanges. Officials state the goal is establishing "a unified limit across all member states, preventing major differences between national laws that could leave loopholes for illegal financial activity."
Critics, however, argue the regulation represents government overreach and undermines financial privacy. Civil liberties organizations have expressed concern that mandatory electronic payment systems create extensive data trails that governments and corporations can monitor and potentially abuse.
