On 16 October 2017, new, more flexible rules on cash payments came into force, introduced by the Law of 18 September 2017 on the prevention of money laundering and terrorist financing and the restriction on the use of cash.
1. Relaxation of the cash receivable
In a previous article on money laundering legislation, we informed you that the regulation on payment in cash had been made more flexible.
Previously, when the total price was equal to or higher than € 3,000, only a maximum of 10% of the total amount could be collected in cash, with a threshold capped at € 3,000.
This provision has been made more flexible, in the sense that, whatever the amount of the total price, an amount of up to € 3,000 can now always be collected in cash.
We illustrate the difference on the basis of an example:
Before, when the total price was € 7 000, only 10% of this amount or € 700 in cash could be collected, from now up to € 3 000 can be collected in cash.
2. Not anymore exclusively applicable between traders
Now these rules apply to all payments and cash donations, not only between merchants, but also between non-profit organisations, liberal professions and farmers.
There is still an exception for cash payments between consumers to which the previous rules do not apply. When you purchase a vehicle from another individual as an individual, the limit is not required.
The following exceptions apply:
• Cash payments are not allowed when buying a real estate; in this case, it is only allowed to pay by bank transfer or check.
• The same applies for the purchase of precious metals, copper cables or products containing precious metals.
In case of non-compliance with this legislation, you risk a fine between € 250 and € 225,000 with a maximum of 10% of the amount unduly received or paid. The creditor and the debtor are jointly and severally liable for the fine.