EU to Ban Cash Payments Above €10,000 Starting in 2027
The European Union has approved a sweeping anti–money laundering framework that will impose a unified €10,000 limit on cash transactions across all 27 member states. The regulation is set to take effect in 2027 and marks one of the most significant financial control measures in EU history.
A Single Cash Cap Across the European Union
The cash ceiling will apply to all commercial operations within the EU. Transactions between private individuals remain exempt, but any business-related payment using cash above €10,000 will be prohibited once the regulation activates.
The rule aims to create uniform anti–money laundering standards across Europe. While €10,000 becomes the maximum allowed threshold, individual countries are permitted to enforce stricter limits. Several have already done so — France and Spain both operate with a €1,000 limit for residents, setting a precedent for more aggressive national policies.
Luxury Goods Face Mandatory Identity Checks
The regulation introduces new obligations for merchants dealing in high-value items such as jewelry, luxury cars, yachts, and private aircraft. Sellers must verify a buyer’s identity, maintain transaction records, and report any suspicious behavior to national financial intelligence units.
The EU argues that such sectors are frequently exploited for money laundering and require targeted oversight to curb illicit financial flows.
Crypto Providers Brought Under Stricter AML Rules
Crypto-asset service providers are also included under the updated AML regime. All cryptocurrency transactions above €1,000 will require full KYC verification, regardless of platform or asset type. Licensed exchanges must implement extensive monitoring and reporting procedures.
Stablecoins, regulated exchange assets, and custody providers fall under standard compliance requirements. However, privacy-focused cryptocurrencies — notably Monero and Zcash — are subject to heightened scrutiny due to their anonymity features. Several EU regulators have already signaled that restrictions or operational barriers for privacy coins may increase under the new framework.
Creation of the EU Anti-Money Laundering Authority (AMLA)
A central part of the reform is the launch of a new European Anti–Money Laundering Authority (AMLA), headquartered in Frankfurt. The agency will begin ramping up operations in 2025 and is expected to be fully functional by 2028.
AMLA will directly supervise up to 40 of the EU’s largest financial institutions, including major crypto service providers. It will also coordinate cross-border investigations and ensure consistent enforcement across member states.
Critics Warn of a “Cashless Society,” While EU Defends Its Position
Opponents of the new rules argue that the cash cap represents another step toward a fully cashless future, raising concerns about privacy, state surveillance, and financial autonomy. They warn that limiting cash could push citizens further into traceable digital payments controlled by banks and governments.
EU officials reject these claims, framing the regulation as an essential tool for combating organized crime, terrorism financing, tax fraud, and corruption. Authorities insist that legitimate users will not be affected and that the goal is to eliminate high-risk transactions, not everyday financial freedom.
Conclusion
With the introduction of a unified cash limit and expanded oversight for cryptocurrency providers, the European Union is taking a decisive step toward tightening its financial security infrastructure. The new rules signal the EU’s intent to modernize anti–money laundering legislation and reinforce centralized supervision. Once the law comes into force in 2027, businesses, crypto platforms, and luxury markets will all operate under far more stringent compliance requirements.
Editorial Team — CoinBotLab