EN ECB -PUBLIC 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 18 March 2013  
on the limitation of cash payments   
(CON/ 2013/18) 
 
Introduction and legal basis  
On 21 February 2013, the European Central Bank (ECB) received a request from  the Nationale Bank van 
België/Banque National e de Belgique (NBB), acting on behalf of the Belgian Ministry of Finance  and the 
Belgian Ministry of Interior Affairs , for an opinion on a draft  law providing for urgent measures to fight 
against fraud  (hereinafter the ‘ draft law ’).  
The ECB’s competence t o deliver an opinion is based on Article 127(4)  and 282(5)  of the Treaty  on the 
Functioning of the European Union  and the  second indent of Article  2(1) of Council Decision 98/415/EC 
of 29  June 1998 on the consultation of the European Central Bank by nation al authorities regarding draft 
legislative provisions1, as the draft law relates to means of payment . In accordance with the first sentence 
of Article  17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has 
adopted this opini on. 
 
1.  Purpose of the draft law 
1.1  Further to the revision of the recommendations of the Financial Action Task Force on Money 
Laundering (FATF) in February 20122, the draft law amends the criteria for identif ying tax fraud, 
which  trigger s the applicati on of the Law of 11 January 1993 on the prevention of the use of the 
financial system for money laundering and terrorist financing (here inafter the ‘ Law on money 
laundering’). Article 5(3) and Article 28 of the L aw on money laundering currently refer to ‘s erious 
and organised tax fraud, which sets in motion complex mechanisms or which uses processes with 
an international dimension’ . Under the draft law , this is changed to ‘serious tax fraud, organised or 
not’. This change w ill also be reflected in the provi sions of the Penal Code  on confiscation and 
concealment. The explanatory memorandum states that  this would make it possible to prosecute  the 
laundering of the proceeds from serious tax fraud which is not  organised , but nonetheless may be 
classified as seri ous given the amounts at stake .  
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  International standards on combating money laundering and the financing of terrorism and proliferation, FATF 
Reco mmendations, February 2012.   
ECB -PUBLIC 
2 1.2 The draft law also clarifies the scope of the prohibition of cash payments under  Article 21 of the 
Law on money laundering . Currently , a merchant may receive up to 10% and not more than 
EUR  5 000 of the sales  price for goods or service s in cash , whether the sale takes place in one 
operation or in the form of separate operations which appear linked. Article X+1  of the draft law 
provides that  a trader in precious metals may pay up to 10% and not more than EUR 5 000 in cash  
when  purchas ing precio us metals, whether the purchase take s place in one operation or in the form 
of separate operations which appear linked. From 1 January 2014, the amount which may be settled 
in cash shall be lowered to EUR 3 000. Precious metals are c urrently defined in Article 69 (2) of the 
Law of 29 December 2010 laying down various measures  with reference to gold, silver or 
platinum, with the exclusion of coins.  
1.2.1  The breach of the above mention ed limitations of payments is sanctioned by a fine f rom EUR 250 
to EUR 225 000, whose effective amount may not exceed 10% of the price unduly paid in cash. 
Both the  debtor and the creditor  are jointly liable for any fine3.  
1.2.2  The King will identify in a Royal Decree the list of merchants and service pro viders (including 
those involved in precious metal  transactions) who must inform  the Financial Information 
Processing Unit of any case of breach of  the cash limit ation4.  
1.3 In order to curb the increased theft of copper wire, the L aw of 29 December 2010 laying down 
various measures w ill also be amended in order to prohibit using cash to purchase copper cables  
that are  recycled , used or offered  as such, by natural or legal persons active in the recuperation, 
recycling and trade in precious metals. Natural and legal persons active in the recuperation, recycling and trade in old metals or precious metals are required to identify and register the natural 
or legal person who buys the metals if those purchases are paid for in cash for an amount of more 
than EUR 500.  
 
2.  General observations  
2.1 As emphasised in ECB Opinions CON/ 2002/24 and CON/ 2003/25 in respect of previous versions 
of the Law on money laundering  and recital 19 of Council Regulation (EC) No 974/98 of 
3 May  1998 on the introduction of the euro
5, limitations on payments in notes and coins, 
established by Member States for public reasons, are not incompatible with the status of legal 
tender of euro banknotes and coins, provided that other lawful means for the settlement of monetary 
debts are availa ble’. In addition, limitations on payments in cash should be proportionate to the 
objectives pursued and should not go beyond what is necessary to achieve such objectives.  
2.2 The European Commission is currently reviewing Directive 2005/60 /EC of the European 
Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial 
                                                 
3  Article 41 of the Law on money laundering.  
4  Article 21 (4) paragraph of the L aw on money laundering.  
5   OJ L 139, 11.5.1998, p.  1. 
ECB -PUBLIC 
3 system for the purpose of money laundering and terroris t financing6, which was implemented in 
Belgium by the L aw on money laundering . This review may potent ially lead to the lowering of 
thresholds triggering a declaration in respect of the underlying transactions.    
 
3.  Specific observations  
3.1 The ECB was not consulted on the Law of 29  March  2012 amending the Law on money laundering , 
which lower ed the upper threshold for settle ment of payments  in cash from EUR 15 000 to 
EUR  5 000 (and EUR 3 000 from 1 January 2014) . The legislative framework  as amended  by the 
draft law  result s in limitations on payments in cash which would be quite extensive .   
3.2 The ECB understands , however,  that: (a) lawful means for the settlement of monetary debts, other 
than cash, are available in Belgium ; and ( b) the draft law’s objectives of combating tax  fraud  and 
curbing of theft of copper qualify as public reason s outweighing th e impact of the limitations on 
cash payments.  
3.3 With a  view to introducing some flexibility in the Law on money laundering, t he ECB would 
recommend allowing  payments in cash for compelling reasons or for reasons beyond the control of 
a customer7.  
3.4 The ECB would  also recommend weighting the measures proposed in the draft law against the 
public benefits expected to be derived from them  in order to ensure that the effects of those 
measures do not go beyond what is necessary for achieving the objective of  combatting tax fraud 
and criminal activity in relation to precious metals . The ECB assumes that such weighting would be 
conducted by the King, when enacting the list of merchants and service providers who must pass to 
the Financial Information Processing Unit information on transactions carried out in breach of 
Article 21 of the Law on money laundering, followi ng an  opinion of the Financial Processing Unit 
and after consultation of the representatives of the sectors at stake8. 
 
This opinion will be published on the ECB’s website.  
 
Done at Frankfurt am Main, 18 March 2013.  
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                 
6  OJ L 309, 25.11.2005, p. 15.  
7  See CON/2012/83 and CON/2013/11. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu.  
8  See Article 21, paragraph 4 of the L aw on money laundering.