EN ECB-PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 31 October 2012 
on restrictions on cash payments 
(CON/2012/83) 
 
Introduction and legal basis 
On 2 October 2012, the European Central Bank (ECB ) received a request from the Slovak Ministry of 
Finance for an opinion on a draft law on restrictions on cash payments (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 and th ird indents 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 provisions1, as the draft law relates to means of payment and Národná banka 
Slovenska. In accordance with the first sentence of Artic le 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 draft law aims at combating tax fraud and evasion
2 by means of prohibiting cash payments in 
euro or in another currency, where such payments exceed certain limits. As a general rule, the draft 
law prohibits cash payments in excess of EUR 5 0003. Cash payments of up to EUR 15 000 will 
only be permitted between natural pers ons not registered as sole traders4. 
1.2 The prohibition will also apply to the transfer/receipt of cash abroad where it relates to an 
agreement implemented in Slovakia and where th e transferring/receiving party has a permanent 
residence, temporary residence or tolerated stay, or  a registered office, plant or place of business in 
Slovakia5.  
1.3 The draft law also contains a list of exemptions from the prohibition6. In principle, the above-
mentioned limits will not apply where the party ma king the payment is the State or another public 
authority or where there is a compelling reason for the exemption7.   
                                                 
1  OJ L 189, 3.7.1998, p. 42.   
2  See the first and second paragraphs of the general pa rt of the explanatory memorandum to the draft law. 
3  Article I, Section 4(1) of the draft law. 
4  Article I, Section 4(2) of the draft law. 
5  Article I, Section 7 of the draft law. 
6  Article I, Section 8 of the draft law. 
7  See point (c) of the sixth paragraph of the general pa rt of the explanatory memorandum to the draft law.  
ECB-PUBLIC  
2 1.4 Infringement of the prohibition under the draft law will be without prejudice to the validity of the 
act of law underlying the cash payment8. However, infringement thereof will constitute an 
administrative offence for which a fine of up to EUR 150 000 will be imposed9. 
1.5 The draft law should enter into force on 1 January 201310.   
 2. Specific observations  2.1 The ECB notes that the draft law is in compliance wi th 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
11, 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 tender of euro banknotes and coins, provided 
that other lawful means for the settlement of monetary debts are available’
12. The ECB 
acknowledges that: (i) such other lawful means for the settlement of monetary debts, other than 
cash, are available in Slovakia; and (ii) the draft law’s objective of combating tax fraud and evasion qualifies as a public-interest objective outweighing the impact of the limits on cash payments. 
2.2 In any event, limits on settle ments in cash should be proportionate to the objectives pursued and 
should not go beyond what is necessary to achieve  such objectives. Any impact of the proposed 
limits should be carefully weighed against the pub lic benefits expected to be derived from the 
proposed restrictions on settlements in cash. Also, in  view of the fact that the measures affect 
relatively low-value payments, the competent aut horities should ensure that  the effects of these 
measures do not go beyond what is necessary for achieving the objective of combating tax fraud and evasion. 
 This opinion will be published on the ECB’s website.   Done at Frankfurt am Main, 31 October 2012. 
 
[signed] 
 
The President of the ECB 
Mario DRAGHI 
                                                 
8  Article I, Section 5 of the draft law. 
9  EUR 10 000 in the case of  offences committed by natural persons not registered as sole traders. 
10  Article II of the draft law. 
11  OJ L 139, 11.5.1998, p. 1. 
12  Consistently confirmed by the ECB,  most recently in Opinion CON/2012/36. All ECB Opinions are published on the 
ECB’s website at www.ecb.europa.eu