Cashless Shift Looms Across EU: New Rules Restrict Large withdrawals
Brussels, Belgium – Beginning in late 2024, a sweeping new European Union regulation will dramatically curtail the use of cash, mandating registration for transactions exceeding €10,000 and requiring in-person collection of larger sums.regulation (EU) 2024/1624, adopted by the European Parliament and the Council, aims to strengthen the blocS defenses against money laundering and terrorist financing, but is already sparking debate over privacy and financial accessibility.
The regulation, formally titled “on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing,” represents the most notable overhaul of EU anti-money laundering rules in years. It will impact individuals and businesses across all 27 member states, fundamentally altering how significant financial transactions are conducted. While cash will not be outlawed, the new rules introduce substantial friction for those relying on large cash amounts, effectively pushing transactions toward digital payment methods. The changes are slated to be fully implemented by October 13, 2025, giving financial institutions time to adapt their systems.
Specifically, the regulation dictates that financial institutions and designated non-financial businesses and professions (DNFBPs) must verify the identity of customers making cash transactions of €10,000 or more. Furthermore, withdrawals and deposits of €10,000 or more in cash will require prior registration, and the funds can only be collected in person by the registered individual. This eliminates the possibility of having cash delivered or collected by a third party.
The move builds upon existing anti-money laundering directives, but significantly lowers the threshold for scrutiny. Previously, reporting requirements were triggered at €15,000 for cash transactions. The reduction to €10,000 is intended to capture a wider range of perhaps illicit financial flows.The EU asserts that these measures are crucial to combatting organized crime, terrorism, and tax evasion, and to align with international standards set by the Financial Action Task Force (FATF).
