Restrictions on Cash Use: A Guide

Introduction

The Anti-Money Laundering Law imposes certain restrictions on the use of cash in various financial transactions. These regulations are designed to prevent money laundering and terrorist financing by limiting the use of cash in high-value transactions.

Key Points

• Limit on cash payments: Cash payments exceeding €3,000 are restricted.
• Exemptions: Certain transactions are exempt from this restriction, including:
  • Public auctions
  • Sales/purchases of old jewels
  • Donations to non-profit organizations
• Reporting suspicions: Financial institutions must notify the CTIF-CFI if they suspect that a customer is using cash for money laundering or terrorist financing purposes.
• Restrictions on precious metals: The purchase/sale price of gold, copper cables, or old metals cannot be paid in cash when both parties are professionals. However, when the seller is a consumer and the buyer is a professional, payment up to €500 in cash is allowed.
• Extension to postal deposits: The restriction on cash payments also applies to postal deposits made on bank accounts held by financial institutions or on postal current accounts.
• Proof of payment: If accounting documents cannot determine how payments were made or received, they are presumed to have been carried out in cash.
• Sanctions: Breaches of the provisions relating to the restriction of cash use can result in criminal sanctions and administrative settlements.

Purpose of Restrictions

The restrictions on cash use aim to prevent money laundering and terrorist financing by limiting the use of cash in high-value transactions. By implementing these regulations, financial institutions and individuals are required to report suspicious activities and adhere to certain guidelines for cash payments.