EN ECB-PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 1 February 2013  
on limitations on cash payments 
(CON/2013/9) 
 
Introduction and legal basis 
On 10 January 2013, the European Central Bank (ECB)  received a request from the Danish Ministry of 
Justice for an opinion on a draft law amending the Criminal Code, the Law on the administration of justice, the Law on measures to prevent money launde ring and financing of terro rism and various other 
laws (strengthened measures against economic crime) (hereinafter the ‘draft law’). 
The ECB’s competence to deliver an  opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the second inde nt of Article 2(1) of Council Decision 98/415/EC 
of 29 June 1998 on the consultation of the European  Central Bank by national authorities regarding draft 
legislative provisions
1, as the draft law relates, inter alia , to means of payment. In accordance with the 
first sentence of Article 17.5 of the Rules of Pro cedure of the European Central Bank, the Governing 
Council has adopted this opinion. 
 1.  Purpose of the draft law 
1.1 The draft law aims at providing the best possibl e conditions for the prevention, investigation and 
prosecution of economic crime in the wake of the financial crisis. One of the measures will limit to 
DKK 50 000 cash payments to economic operators to  prevent money laundering and financing of 
terrorism
2. Currently retailers and auctioneers may receive cash payments of up to DKK 100 0003. 
The scope is extended to cover all economic operators4 and the amount of cash they may accept is 
thus reduced to DKK 50 0005. This new limit takes into considera tion the need for citizens to retain 
access to cash payments and the risk of mone y laundering associated with large cash payments6. 
1.2 Finally, cash payments of DKK 50 000 or more to  economic operators in breach of the prohibition 
will still be considered legal tender7. 
                                                 
1  OJ L 189, 3.7.1998, p. 42.   
2  § 12 of the draft law which amends § 1(2) and § 2 of the Law on measures to prevent mone y laundering and financing of 
terrorism.  
3  § 2 of the Law on measures to prevent money laundering and financing of terrorism.  
4  § 1(2) of the Law on measures to pr event money laundering and financing of te rrorism. The scope is extended to all 
economic operators not covered by the investigat ion and information obligations in the law. 
5  § 12 of the draft law. 
6  Point 12.2.2 of the Explanatory Memorandum of the draft law. 
7  § 8(2) of the Law on Danmarks Nationalbank. 
ECB-PUBLIC  
2  
2. Compatibility with Union law  2.1 Although Union law only regulates restrictions on cash payments in euro, the ECB considers it 
appropriate to assess the draft law’s provisions against the relevant Eurosystem practices.  
2.2 The ECB notes that the draft law is  in compliance with Union law, and in particular with recital 19 
of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro
8, which states 
that ‘limitations on payments in notes and coins, established by Member States for public reasons, 
are not incompatible with the status of legal tende r of euro banknotes and coins, provided that other 
lawful means for the settlement of monetary debts are available’9. The ECB acknowledges that: (i) 
such other lawful means for the settlement of m onetary debts, other than cash, are available in 
Denmark; and (ii) the draft law’s objective of preventing money laundering and financing of 
terrorism qualifies as a public reason outweighing the impact of the limitations on cash payments.  
2.3 However, limitations on cash payments shoul d be proportionate to the general objective of 
preventing money laundering and financing of  terrorism and should not go beyond what is 
necessary to achieve this objective. Any impact of the proposed provisions should be carefully 
weighed against the public benefits expected to be derived from them. Also in view of the fact that 
the measures affect relatively low value payments, the competent authorities sh ould ensure that the 
effects of these measures do not go beyond what is necessary for achieving the objective of 
combating money laundering a nd financing of terrorism. 
  This opinion will be published on the ECB’s website.   Done at Frankfurt am Main, 1 February 2013. 
 
[signed] 
 
The President of the ECB 
Mario DRAGHI 
                                                 
8  OJ L 139, 11.5.1998, p. 1. 
9  See most recently Opinion CON/2012/83. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu.