Costa Rica Cracks Down on Cash Transactions: Debate Rages Over Personal Freedom and Financial Surveillance
The Costa Rican legislative assembly has proposed a law aimed at combating money laundering and terrorism financing by restricting cash transactions. The bill, known as N.º 20.438, seeks to eliminate the use of cash for transactions over $10,000, sparking debate about its implications for personal freedom and financial autonomy.
What Does the Proposed Law Entail?
- All transactions involving the transfer of movable or immovable properties requiring registration in the recording office and exceeding $10,000 must be conducted through bank wire transfers.
- The legislation defines “cash” not only as physical currency but also negotiable instruments and other bearer payment methods.
Supporters Argue It’s a Step Towards International Standards
The law’s proponents argue that it will align Costa Rica with international standards for combating financial crimes. However, critics warn that it could mark the beginning of the end for cash transactions in Costa Rica, setting a precedent for further restrictions.
Critics Warn of Financial Surveillance Economy
“This law is not just about fighting money laundering; it’s about creating a financial surveillance economy where every cash transaction over $10,000 is restricted,” said a critic. “It’s a move towards a more authoritarian and controlling government.”
Additional Measures Will Impose Bureaucracy on Law-Abiding Citizens
The proposed legislation also mandates rigorous declarations and verification for transactions falling within its scope, demanding that parties disclose the payment method and the origin of the funds. Notary Publics overseeing such transactions will be required to verify that they were completed via bank wire transfer and document the transaction’s details.
Critics Argue It Will Create Obstacles for Private Transactions
“This law is not just about fighting crime; it’s about creating more obstacles for ordinary people who want to conduct private transactions,” said a critic. “It’s a move towards a more complex and bureaucratic society.”
The Slippery Slope: Where Will Cash Restrictions End?
The proposed legislation has sparked debate in Costa Rica, with many questioning the implications of restricting cash transactions on personal freedom and financial autonomy.
“It’s a slippery slope,” said a concerned citizen. “If we allow the government to restrict our use of cash, where will it end? Will they eventually ban all cash transactions?”