New EU cash controls

BCD Travel, 5/29/2007

On June 15, 2007, rules governing cash flow within the European Union (EU) will go into effect. As of that date, all travelers entering or leaving the EU with €10,000 or more in cash (approximately $13,490 USD) must declare the sum to Customs in order to comply with European Regulation (EC) No 1889/2005.

This initiative is introduced to assist efforts made by the EU to tackle crime and improve security by cracking down on money laundering, terrorism and criminality. The Regulation will provide for a Community-wide approach to controlling cash movements into or out of the Community. More specifically:

  • It will oblige travelers entering or leaving the EU and carrying any sum equal or more than €10,000 (or its equivalent in other currencies or easily convertible assets such as checks drawn on a third party) to make a declaration to the customs authorities. The €10,000 threshold is intended to be high enough to save the majority of travelers and traders from disproportionate administrative formalities.
  • Customs authorities will be empowered under the Regulation to undertake controls on natural persons, their baggage and their means of transport and detain cash that has not been declared.
  • Member States will be required to initiate proceedings against persons who fail to declare cash of a value of €10,000 or more. Member States will have to ensure that the penalties resulting from such proceedings are proportionate to the offense, so as to have a deterrent effect.
  • Information obtained through declaration or through control shall be recorded and shall be made available to the authorities responsible for combating money laundering and terrorist financing.

Please note that there are separate control and declaration provisions for intra-Community cash movements in some individual Member States, which will be applied in addition to EU rules. Further information on such extra controls along with further background information on the new Regulation can be obtained from the following European Commission website: http://ec.europa.eu/eucashcontrols.

If you have any further questions, please contact your Atlas travel manager.