Friday, May 2, 2008

New European Commission Cash Control Regulations Effective 15 June 2007

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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