Restrictions on Cash Transactions in Belgium: A Guide

Introduction

As part of its efforts to combat money laundering and terrorist financing, the Belgian government has introduced several changes to restrict the use of cash in high-value transactions. This article outlines key points about these restrictions.

Key Restrictions

1. Cash Transaction Limitations

• Article 67, § 2, first paragraph of the Anti-Money Laundering Law prohibits any payment exceeding EUR 3,000 carried out or received in cash, except for certain exceptions.

• Exemptions:

  • Sales of real property
  • Transactions between consumers
  • Obligated entities and their customers
  • Credit institutions, payment or electronic money institutions, and stockbroking firms

2. Payment Methods for Real Property Purchases

The sales price of real property can only be paid through a bank transfer or cheque, excluding cash payments.

3. Postal Deposits

• The restriction is extended to postal deposits made on bank accounts held by financial institutions in Belgium or on postal current accounts.
• Only consumers are allowed to make these deposits.

4. Proof of Payment

If accounting documents cannot determine how payments were made or received, they are presumed to have been carried out or received in cash.

5. Sanctions

Criminal sanctions and administrative settlements can be imposed or proposed by the FPS Economy in case of breach of provisions relating to the restriction of cash use.

Compliance and Best Practices

Internal procedures should guarantee compliance with these rules restricting cash usage for activities performed, taking into account ML/FT risks associated with large cash transactions. The NBB recommends verifying financial institutions’ customer and transaction due diligence obligations properly take into account mentioned rules relating to cash restriction.