European Union Strengthens Cash Movement Controls

On 2 October 2018, the Council of the European Union passed new rules regulating controls on cash entering or leaving the European Union (the "New Rules"). 

The effective cash control rules (Regulation 1889/2005) are an integral part of the EU Anti Money Laundering and Terrorist Financing legislation. 

The New Rules amend the regulation of controls on cash as follows: 

1. The definition of "cash" has been expanded to include not only banknotes, but also other instruments such as cheques, traveller's cheques, prepaid (debit) cards and gold. 

2. The list of the subjects of regulation is supplemented with cash sent by post, freight or courier shipment. 

3. Any citizen entering or leaving the EU and carrying cash of a value of €10,000 or more is required to declare it to the customs authorities. Travelers will be required to file declarations irrespective of whether they are carrying the cash in person, in their luggage or means of transport. 

4. If the cash is sent in a different way ("unaccompanied cash"), the relevant authorities will have the power to demand that the sender or the recipient make a disclosure declaration and to check consignments and vehicles. 

It is expected that the New Rules will not prevent the EU member states from providing additional controls on cash movements under their national law. 

After the signing, the New Rules shall be published in the Official Journal of the European Union and become effective on the twentieth day following the publication. 

In view of the above, cash owners carrying and/or transferring cash into or out of the European Union will be required to take into account relevant changes to avoid negative consequences after the New Rules come into effect. 

For further information, please contact Asters' partner Oleksandr Onufrienko or associate Sergiy Nakonechniy.

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