EN ECB -PUBLIC  
 
 OPINION OF THE EUROPEAN CENTRAL BANK  
of 30 May 2017  
on the limitation of cash payments   
(CON/ 2017 /20) 
 
Introduction and legal basis  
On 3 April 2017  the European Central Bank (ECB) received a request from  the Belgian Ministry of 
Finance  for an opinion on a draft law on the prevention of money laundering and terrorist financing, and 
the limitation of cash payments  (hereinafter the ‘ draft law’).  
The ECB’s competence to deliver an opinion is based on Article s 127(4) and 282(5)  of the Treaty  on the 
Functioning of the European Union  and the  second and third indent s of Article  2(1) of Council Decision 
98/415/EC1, as the draft law contains provisions concerning means of payments and the Nationale Bank 
van België/Banque Nationale de Belgique ( ‘NBB’). In accordance w ith the first sentence of Article  17.5 of 
the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.  
 
1. Purpose of the draft law 
1.1. The main purpose of the draft law is to implement into Belgian law Directive (EU) 2015/ 849 of the 
European Parliament and of the Council2. The Belgian legislator has taken this opportunity to 
consolidate in the draft law, and if necessary amend, provisions of relevance in this field, including 
the limitation of cash payments and the provisio ns defining the NBB’s powers in this field.  
1.2. In particular,  all rules on the limitation of cash payments , which are currently set out in the Law of 
11 January 1993 on the prevention of the use of the financial system for money laundering and 
terrorist finan cing and t he Law of 29 December 2010 laying down various measures, are now 
moved into the draft law .  
1.3. Under the se rules, which were last amended by the Law of 15 July 2013 containing urgent 
provisions on the fight against fraud3, merchants may currently re ceive in cash up to 10  % and not 
more than EUR 3  000 of the sale price o f goods or  services , whether the sale takes place in one 
operation or in separate operations which appear linked.  The same limitation of cash payments 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by nati onal 
authorities regarding draft legislative provisions ( OJ L 189, 3.7.1998, p. 42 ).  
2  Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use 
of the financial system for the purposes of money lau ndering or terrorist financing, amending Regulation (EU) No 
648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European 
Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p.  73). 
3 See Opinion CON/2013/18.   
ECB -PUBLIC  
2 applies to the sale and purchase by traders of precious metal s (defined as gold, silver or platinum, 
with the exclusion of coins). Furthermore,  to curb the increas ing theft of copper wire, the 
abovementioned Law of 29 December 2010 specifically p rohibits payment in cash f or copper 
cables,  whether recycled or used or presented as such, by natural or legal persons active in the 
recuperation  and recycling of and trade in old or pre cious metals.  Finally, natural and legal persons 
active in the recuperation, recycling and trade in old or precio us metals are required, if they sell 
such metals to natural or legal persons, to identify and register the person who buys them if those 
purchases are paid for in cash in an amount over EUR 500.  
1.4. The draft law expands the  limitation s on cash payments to all  cash payments  made by any person , 
without distinction as to the (contractual or extracontractual) nature of the obligations that g ive rise 
to such payments , the existence (or not) of consideration, the persons carrying out such payments 
or the capacity (m erchant, trader or other) in which such persons act. According to the explanatory 
memorandum to the draft law, the purpose of this amendment is to capture various situations in 
which cash payments are sometimes substantial (exchange  transaction s with a sup plement, 
specifically involving  gold).  
1.5. Exceptions are, however, made in respect of (1) real estate transactions , which involve notaries 
and real estate agents, to whom the draft law applies ; (2) transactions between consumers , to 
whom the draft law does n ot apply, and who rarely conduct operations relati ng to high value goods 
and who may, in any case, not be subject to systematic monitoring ; and (3) payment  in cash  or 
gifts effected by or with financial institutions , including credit institutions, the NBB,  Bpost, payment 
institutions, issuers of electronic money, exchange office s, stock  market  companies  and bureau x 
de change, as operations involving cash are inherent to their activities .  
1.6. The draft law also redefines the thresholds for the limitation of cas h payments which may now be 
made  up to EUR 3  000. In particular, t he draft law waives the criterion of 10  % of the price of goods 
or services. Furthermore, the cap of EUR 3  000 n o longer relates to the amount to be paid , but to 
the amount  effectively paid or given in cash. Thus, a payment or gift of EUR 5  000 may be effected 
and received in cash up to EUR 3  000, provided that the remaining balance is effected or received 
in another way. This  relaxation of the rule is justified by the low threshold of EUR 3  000 and the 
complexity of the current rule, which  is disadvantageous for any low -value advance payment 
effected in cash .  
1.7. The draft law also reviews the limitations of cash payments applicable to the sale of gold by 
consumers to professionals. To remedy th e lack of clarity as to the applicability of the limitation of 
cash payments to the purchase of gold ingots by professionals, the draft law substitutes the new 
concept of ‘precious substances ’, which  is broadly defined and refers to gold, platinum, silver and 
palladium , for the current concept of ‘precious metals ’, which excludes investment gold, such as 
ingots and coins. Furthermore, except in the case of an open sale under the supervision of a bailiff,  
if a purchaser is not a consumer they may not pay in cash for old metals, copper cables or good s 
containing pre cious substances , unless they are present only in  small quantities and only because  
of the physical properties  they provide . According to the explanatory memorandum4, this prohibition 
                                                 
4  Explanatory memorandum, p. 255.  
ECB -PUBLIC  
3 is justified b ased on the increased  risk of money laundering and the handling of stolen goods, 
especially by trave lling criminal groups. The existing obligation to record such cash payments has 
not prevented  the handling  of such goods,  and this requirement is regularly circumvent ed by 
traders overvaluing the quantity purchased from some consumers , and not  record ing the data of 
others who sell jewels with dubious origin s. The draft law introduces, nevertheless, an exception to 
the prohibition for low cash payments of up t o EUR 500, to allow occasional sales by a consumer 
of goods made out of gold, such as an old ring. The existing obligation regarding  identification is 
retained in those instances.   
1.8. The draft law also contains provisions intended to clarify the powers and tools of the NBB with 
regard to the prevention of money laundering and terrorist financing . To this end , the draft law  
amends the Organic Law of the NBB  to confer the task on the NBB, as part of its supervisory 
power s, of ensur ing that financial institutio ns comply with legal and regulatory provisions including  
European law aimed at preventing the use of the financial system for the purpose of money 
laundering and terrorist financing and the financing of the proliferation of weapons of mass 
destruction. The draft law lists all of the supervisory powers, control measures and sanctions 
available to the NBB to discharge this task.  The draft law furthermore authorises the NBB to 
exchange with other competent authorities of Union Member State s or third countr ies information 
relevan t to the discharge of this task under rules ensuring the respect of the confidentiality of such 
information . Finally, the draft law authorises the Treasury  to demand information from the Central 
Point of Contact at the NBB for the purpos e of the application of the financial penalties set out in 
Union Council regulations on financial sanctions set out in resolutions adopted by the 
United  Nations Security Council.  
 
2. General observations  
2.1. Although the draft law amends the Organic Law to empow er the NBB to ensure that financial 
institutions comply with legal requirements aimed at preventing the use of the financial system for 
the purposes of money laundering and terrorist financing and the financing of the proliferation of 
weapons of mass destr uction, the ECB understands that the NBB, as part of its current supervisory 
power s, already discharges this task and uses the powers, measures and tools set out in the draft 
law. Against this backdrop, the draft law does not confer any genuinely new task on the NBB.  
2.2. This opinion does not address the issue of the draft law’s effective transposition of Directive (EU) 
2015/849 into Belgian law. The focus of this opinion is on the limitation of cash payments and the 
NBB’s tasks under the draft law.  
 
3. Limitatio n of cash payments  
3.1. The Commission’s Recommendation of 22 March 2010 on the  scope and effect of  legal tender of 
euro banknotes and coins5 (hereinafter “the Commission’ Recommendation”) states that the 
                                                 
5  Commission Recommendation of 22 March 2010 on the scope and effects of legal tender of euro banknotes and 
coins ( OJ L 83, 30.3.2010, p. 70 ). 
ECB -PUBLIC  
4 acceptance of payments in cash should be the rule, but  acknowledges that cash may be refused 
for reasons related to the ‘good faith principle’ , without this constituting a breach of the legal tender  
status  of cash . Neither the Commission Recommendation nor other Union law explicitly addresses 
whether, nor to wh at extent, itmay be permissible to introduce a more general limitation to the 
obligation to accept cash payments. Therefore, Union law must be interpreted in order to ascertain 
the conditions that a limitation on payments in euro bank notes and coins should  fulfil, including the 
conditions that should be fulfilled to comply with the legal tender status of  euro banknotes and 
coins when gen eral limitations o n the obligation to accept cash payments are introduced6.  
3.2. Without prejudice to the specific considerati ons in paragraphs  3.5 to 3. 8, the draft law must comply 
with Union law. In this context, recital 19 of Council Regulation (EC) No 974/987, which  states that 
limitations on payments in bank 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 available , should be taken into 
account8. The ECB considers that other lawful means  for the settlement  of monetary debts, which 
ensure similar benefits to those of cash,  are generally available in Belgium for all transactions that 
are subject to the limitation of cash under the draft law.  
3.3. Limitations on payments in cash should , however,  be effective and  proportionate to the objectives 
pursued and  should not go beyond what is necessary to achieve such objectives . Any negative 
impact of the proposed limitations should  therefore  be carefully weighed against the anticipated 
public benefits. When considering whe ther a limitation is proportionate , the adverse impact of the 
limitation in question should always be considered , as well as whether any alternative measures 
could be adopted that would fulfil the relevant objective and have less adverse impact9  
3.4. Furthermo re, it should be borne in mind that the ability to pay in cash remains particularly important 
for certain groups in society that, for various legitimate reasons, prefer to use cash rather than 
other payment methods . Cash is generally also appreciated as a payment instrument because it is 
widely accepted, fast and facilitates control over the payer’s spending. Moreover, it is the only 
means of payment that allows citizens to instantly settle a transaction in central bank money and at 
face value,  without  the legal possibility to impose  a fee  for the use of this means of payment , 
Moreover, cash  payments  facilitate the inclusion of the entire population in the economy by 
allowing it to settle any kind of financial transaction in this way . 
3.5. The ECB understands tha t the Belgian legislator propos es to take advantage of the implementation 
of Directive (EU) 2015/849 to review the limitations o n cash payments , which are relaxed in certain 
respects and bolstered in others . On the one hand, the draft law adapts  the thresh old for cash 
payment s, which is to EUR 3  000 of the amount effectively paid, without being combined with the 
criterion of 10  % of the price of the goods or services . On the other hand , the limitation o n cash 
                                                 
6  CON/2017/18.  
7  Council Regulation (EC)  No 974/98 of 3 May 1998 on the introduction of the euro (OJ L 139, 11.5.1998, p. 1).  
8  See for example Opinions CON/2013/18, CON2014/4 and CON/2014/37. All ECB opinions are published on the 
ECB’s website at www.ec b.europa.eu .  
9  See for example paragraph 2.3. of Opinion CON/2014/4, paragraph 2.3. of Opinion CON/2014/37 and paragraphs 
2.6 and 2.7 of Opinion CON/2017/8.   
ECB -PUBLIC  
5 payments now applies to all kind of payments, wi thout distinction as to the contractual or non-
contractual nature of the  payment , the existence (or not) of a ny consideration or the capacity in 
which natural or legal persons act.  Transactions between consumers are , however,  excluded from 
the scope of the se limitations . Furthermore, t he strict prohibition o n cash payments which  appli es 
now to the purchase of copper cables by non -consumers is extended to purchases by non -
consumers of all types of old metals, copper cables or good s containing precious materi als. 
The only e xceptions are where  an open sale takes place under the supervision of a bailiff, whe re 
the purchaser is not a consumer, and for low cash payments of up to EUR 500.  
3.6. Although other lawful means for the settlement of monetary debts are availab le in Belgium and the 
draft law’s objectives of combating money laundering and the handling of stolen goods, especially 
by trave lling criminal groups , qualify as public reason s outweighing any impact of the limitations on 
cash payments  the ECB would, never theless, recommend a careful weighting of the measures 
proposed in the draft law that bolster the limitation o n cash payments against the public benefits 
expected to be derived from them, especially as regards the strict prohibition o n cash payment for 
goods containing precious  metals .  
3.7. The ECB welcomes that the threshold for cash payments is now defined with out reference to the 
criterion of 10  % of the price of the goods or services. Not only does this amendment clarify the 
limitations o n cash payments – which are currently poorly understood and implemented – but it 
also contributes to greater circulation of cash. As a matter of fact, the envisaged EUR 3  000 
threshold – which  is quite low considering that Directive (EU) 2015/849 applies customer due 
diligen ce measures only to cash payments of EUR 10 000 or more – would now relate to the 
amount effectively paid, and no longer to the total purchase price of the goods or services.  
The ECB also welcomes that such limitations do not apply to transactions between consumers, as 
for such transactions there might be difficulties involved  in replac ing cash due, inter alia, to the 
insolvency risk of the counterparty, the lack of possibility of immediate settlement, and the absence 
of an infrastructure for cashless means  of payment which ensure similar benefits to those of cash  
for private  persons . 
3.8. The ECB recommends, however, raising the threshold of EUR 500 for purchases by non -
consumers of all types of old metals, copper cables or goods containing precious materials , as this 
threshold is disproportionately low, despite the intention o f combat ting money laundering and the 
handling of stolen goods, especially by trave lling criminal groups . In the case of vendors selling 
jewels with dubious origin s traders are, in any case , not supposed to enter into such transaction s, 
irrespective of their amount, as this would give rise to a breach of criminal law on account of 
concealment.  
 
4. The NBB’s tasks, powers and tools available for the prevention of money laundering and 
terrorist financing  
4.1. The ECB welcomes that the draft law and the Organic Law separate the NBB’s powers and tools 
for the prevention of money laundering and terrorist financing from those available to it as part of its 
ECB -PUBLIC  
6 supervisory competences. This facilitates the exe rcise of supervisory powers within the framework 
of the S ingle Supervisory Mechanism .  
4.2. The ECB notes that the Central P oint of Contact at the NBB referred to in the draft law, from which 
the Treasury may request  information for the purpose of the applicati on of the financial penalties 
set out in Council regulations on financial sanctions set out in  resolutions adopted by the 
United  Nations Security Council , corresponds to the central register of bank accounts, regarding 
which the ECB issued Opinion CON/2016 /35. The ECB understands that the Belgian legislator is 
currently drafting a  law setting out the principles according to which the development and 
functioning costs of this register will be fully covered ex ante by its users (including the Minister for 
Finance, when the request emanates from the Treasury) and that a royal decree will further detail 
the accounting mechanisms to this end. The prohibition of monetary financing is therefore complied 
with and this issue does not call for further comments from th e ECB .  
 
This opinion will be published on the ECB’s website.  
 
 
Done at Frankfurt am Main, 30 May  2017 . 
 
[signed]  
 
The President of the ECB  
Mario DRAGHI