Please be aware that in its efforts to combat terrorism, international crime and money laundering, the European Commission has decided to implement Regulation 1889/2005 relating to cash controls. This Regulation comes into effect on 15th June 2007 and is planned to provide a Community-wide approach to controlling cash movements into and out of the EC. Headlines of the new regulation are as follows:
- It will oblige travellers entering or leaving the Community and carrying any sum equal to, or greater than, €10,000 (or its equivalent in other currencies or easily convertible assets such as cheques drawn on a third party) to make a declaration to the customs authorities. The €10,000 threshold is high enough to save the majority of travellers and traders from disproportionate administrative formalities.
- Customs authorities will be empowered under the Regulation to undertake controls on natural persons, their baggage and their means of transport and detain cash that has not been declared.
- Member States will be required to initiate proceedings against persons who fail to declare cash of a value of €10,000 or more. Member States will have to ensure that the penalties resulting from such proceedings are proportionate to the offence, so as to have a deterrent effect.
- Information obtained through declaration or through control shall be recorded and shall be made available to the authorities competent for combating money laundering and terrorist financing.
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