REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL On the application of Regulation (EC) No 1889/2005 of the European Parliament and of the Council of 26 October 2005 on controls of cash entering or leaving the Community pursuant to article 10 of this Regulation
Date: 2010-08-12
Institutions: European Commission
Subjects: capital movement, capital transfer, customs cooperation, customs regulations, drafting of EU law, financial legislation, money laundering, recycling of capital

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EUROPEAN COMMISSION 

Brussels, 12.8.2010 
COM(2010) 429 final 

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

On the application of Regulation (EC) No 1889/2005 of the European Parliament and of 
the Council of 26 October 2005 on controls of cash entering or leaving the Community 
pursuant to article 10 of this Regulation 

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REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

On the application of Regulation (EC) No 1889/2005 of the European Parliament and of 
the Council of 26 October 2005 on controls of cash entering or leaving the Community 
pursuant to article 10 of this Regulation 

1. 

INTRODUCTION 

Regulation (EC) No 1889/2005 of the European Parliament and of the Council of 26 
October 2005 on controls of cash entering or leaving the Community1, referred to in 
the  rest  of  this  report  as  "the  Cash  Control  Regulation",  entered  into  force  on  15 
December 2005. Article 10 of the Cash Control Regulation requires the Commission 
to submit a report on its implementation to the European Parliament and the Council 
4 years after its entry into force.  

The Cash Control Regulation is applicable since 15 June 2007 and given this recent 
applicability, focus has been put, both by Member States (MS) and the Commission 
(COM),  on  the  creation  of  appropriate  structures  and  the  development  of  adequate 
procedures  so  as  to  allow  for  a  harmonised  implementation  of  the  Cash  Control 
Regulation.  

To start the evaluation process, the COM sent out questionnaires to the MS in July 
2008.  The  MS’  replies  to  this  questionnaire2  followed  by  discussion  in  several 
meetings with the MS in the "Cash Control Working Group" provided the COM with 
sufficient information to draw up this report. 

2. 

GENERAL BACKGROUND 

2.1. 

Context 

2.1.1. 

European Union (EU) legislation 

The  EU  legal  framework  to  prevent  money  laundering  is  composed  of  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 system for the purpose of money laundering 
and  terrorist  financing3  as  amended  by  Directives  2007/64/EC,  2008/20/EC  and 
2009/110/EC, and Regulation (EC) No 1781/2006 of the European Parliament and of 
the  Council  of  15  November  2006  on  information  on  the  payer  accompanying 
transfer  of  funds4.  Council  Decision  2000/642/JHA  concerning  arrangements  for 

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OJ L 309, 25.11.2005, p. 9 - 12. 
Replies to all questionnaires were received by 25 February 2009, with the exception of Belgium that did 
not reply. The information in the report is therefore based on the information submitted by 26 Member 
States. For the cash statistics all Member States are included.  
OJ L 309, 25.11.2005, p. 15 – 36. 
OJ L 345, 8.12.2006, p. 1 – 9. 

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cooperation between financial intelligence units of the Member States in respect of 
exchanging information and Council Framework Decision 2001/500/JHA on money 
laundering,  the  identification,  tracing,  freezing,  seizing  and  confiscation  of 
instrumentalities and the proceeds of crime are equally relevant. Complementary to 
this framework the EU counter-terrorist financing strategy points at measures aiming 
to improve the results in the fight against terrorist financing. 

Directive  2005/60/EC,  which  replaced  Directive  1991/308/EEC,  contains  an  EU 
mechanism  to  prevent  money  laundering  by  monitoring  transactions  through  credit 
and  financial  institutions  and  certain  types  of  professions.  The  risk  that  the 
application of that mechanism would be circumvented by cash movements for illicit 
purposes or for terrorist financing led to the need to complement this measure by a 
control requirement for cash entering/leaving the EU. 

The Cash Control Regulation was adopted for this purpose and seeks to reconcile the 
fundamental principle of free movement of goods, persons, services and capital with 
the  prevention  of  money  laundering  and  terrorist  financing  in  the  context  of  the 
single market and an economic and monetary union. 

2.1.2. 

International aspects  

A major partner in ensuring the effectiveness of the Cash Control Regulation is the 
Financial Action Task Force (FATF) and its affiliated regional body Moneyval. This 
intergovernmental  body,  set  up  by  the  G7  Summit,  held  in  Paris  in  1989,  supports 
governmental  policies  in  anti-money  laundering and terrorist financing. It  does  this 
by  issuing  recommendations  and  guidelines  and  by  checking  compliance  with  its 
recommendations via a mutual evaluation system so as to put a constant pressure on 
its  members  to  ensure  effective  anti-  money  laundering  and  terrorist  financing 
measures.  

Special Recommendation (SR) IX of the FATF on cash couriers is transposed in the 
EU  by  the  Cash  Control  Regulation.  The  discussion  on  SR  IX  procedures  and  the 
evaluation  and  progress  reports  prepared  by  FATF  assessors  have  on  numerous 
occasions been the accelerator for further improvements of cash controls in the MS.  

The  FATF  has  recently  recognised  the  EU  as  a  supra-national  jurisdiction  for  the 
application  of  SR  IX  on  cash  couriers.  This  recognition  implies  specific  criteria  to 
comply  with,  such  as  an  appropriate  exchange  of  relevant  information  at  supra-
national  level  and  comparable  training,  data  collection,  enforcement  and  targeting 
programmes developed and applied at supra-national level.  

2.2. 

Core elements of the Cash Control Regulation  

2.2.1. 

The obligation to declare 

The  Cash  Control  Regulation  establishes  a  uniform  EU  approach  towards  cash 
controls  based  on  a  mandatory  declaration  system  for  amounts  of  cash  entering  or 
leaving  the  EU  with  a  value  of  10  000  €  or  more.  Travellers  have  to  submit 
information to the designated competent authority on declarant, owner and recipient 
as well as on the amount, nature, provenance, intended use and transport of the cash 
in the declaration. The Cash Control Regulation does  neither prescribe the method, 
i.e. orally, written, electronic nor the format of this declaration. 

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2.2.2. 

Designation of powers of the competent authorities  

In order to ensure compliance with the obligation to declare, the national competent 
authorities  must  be  empowered  to  control  natural  persons,  their  baggage  and  their 
means of transport. In the event of failure to comply with the obligation to declare, 
cash may be detained and penalties shall be applied. 

2.2.3. 

Recording and processing of information 

The Cash Control Regulation obliges MS to record and process all information they 
obtain  through  the  declaration  and/or  their  controls  and  to  make  this  information 
available  to  the  national  financial  intelligence  unit  (FIU)  of  the  MS  through  which 
the traveller is entering or leaving the EU.  

2.2.4. 

Exchange of information 

Where  there  are  indications  that  the  sums  of  cash  are  related  to  any  illegal  activity 
associated with the movement of cash, exchange of information may take place with 
authorities  in  other  MS  and  the  information  shall  be  transmitted  to  the  COM  if 
adversely affecting the financial interest of the EU. 

Under  the  framework  of  existing  agreements  on  mutual  administrative  assistance, 
information obtained under the Cash Control Regulation may also be communicated 
to a third country subject to compliance with relevant national and EU provisions on 
the transfer of personal data to third countries. 

2.2.5. 

Confidentiality issues 

All  information  obtained  through  the  Cash  Control  Regulation  is  confidential.  All 
personal  information  shall  be  dealt  with  in  accordance  with  the  relevant  data 
protection provisions. Where considered necessary, rules for the classification of the 
information to guarantee the security of the data shall apply.  

2.3. 

Control of cash movements within the European Union 

The  Cash  Control  Regulation  is  without  prejudice  to  national  measures  to  control 
cash  movements  within  the  EU.  However,  such  national  measures  must  be  in 
compliance  with  Article  65  of  the  Treaty  on  the  functioning  of  the  EU,  which 
empowers  MS  to  establish  procedures  for  the  declaration  of  capital  movements  for 
purposes  of  administrative  or  statistical  information  or  to  take  measures  which  are 
justified  on  grounds  of  public  policy  or  public  security,  provided  the  measures  and 
procedures  applied  shall  not  constitute  a  means  of  arbitrary  discrimination  or  a 
disguised restriction on the free movement of capital.  

The following MS5 apply such intra-EU cash controls at the borders with other MS: 
BE, BG, CY, DE, DK, ES, FR, IT, MT, PL and PT. For that purpose they make use 
of a compulsory - with the exception of PT where the declaration is optional unless 
the natural person is controlled - declaration system with a threshold of 10 000 €. AT 

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The information provided in this report on the intra-EU cash controls does not prejudge any position of 
the Commission regarding the compatibility of these national measures with Article 65 of the Treaty on 
the functioning of the EU. 

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does  not  limit  the  controls  on  cash  to  its  borders  but  applies  controls  on  its  entire 
territory.  ES  has  introduced,  similar  to  AT,  national  controls  but for  amounts  not 
lower than 100 000 €. The UK has not introduce d routine intra-EU cash controls but 
officers  apply  on  UK  territory  (random)  checks  on  passengers  and  their  luggage  in 
respect of any cash carried. IE applies a similar procedure as in the UK but with a 
cash threshold of 6438 EUR. CZ, EE, EL, FI, HU, LV, LT, LU, NL, RO, SL, SK, SE 
do not apply any form of intra-EU cash controls. 

3. 

APPLICATION OF THE CASH CONTROL REGULATION 

3.1. 

Context 

3.1.1. 

Competent authorities  

The Cash Control Regulation does not specify which authority should be designated 
by the MS as the competent authorities. In practice 23 MS have empowered customs 
as the main authorities. DK and EE have empowered the tax and customs authority. 
Two other MS, PL and UK have empowered Customs and Border guards. 

The  specific  national  differences  are  further  reflected  in  the  wide  variety  of  other 
authorities  involved:  Federal  (criminal)  Police,  FIUs,  Agency  for  the  protection  of 
Counter  Terrorism,  Border  Guards,  Provincial  Governments,  Treasury,  anti-fraud 
Departments or investigation services and judicial authorities. Police authorities and 
the FIUs are most frequent partners in the enforcement of cash control. In 16 MS this 
cooperation  amongst  authorities  is  settled  in  written  cooperation  agreements.  One 
third of the MS have set up intelligence cells or working groups between competent 
authorities.  

3.1.2. 

The definition of cash 

The  definition  of  cash  in  the  Cash  Control  Regulation  is  taken  over  from  the 
definition  used  by  the  FATF  in  SR  IX  and  covers  bearer  negotiable  instruments  or 
currency.  So  far,  MS  have  not  reported  major  problems  in  applying  this  definition. 
Gold, precious metals or stones are not included in the definition. Some MS report 
national provisions similar to the obligation to declare cash for gold and/or precious 
metals and stones (BG, DE, AT (on AT territory), CY, CZ and PL). Multi purpose 
electronic cash cards are not included either in the definition. One MS (DE) reports 
national provisions to declare electronic money.  

3.2. 

Obligation to declare  

Any natural person entering or leaving the EU territory is legally required to declare 
any amount of 10 000 € or more he is carryi ng to the competent authorities of the MS 
through which he is entering or leaving the EU, i.e. at the first entry point into the 
EU and the last point of exit from the EU. 

3.2.1. 

Raising awareness on the obligation to declare 

To ensure that travellers are made aware of the obligation to declare, communication 
campaigns have been set up and are continuously renewed at national and EU level. 
At EU level a poster (10000 copies, in 22 languages), multilingual leaflets (401520 

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copies  printed  in  2007  with  revised  reprint  in  1000000  copies  in  July  2009), 
advertorials  in  in-flight  magazines  (in  10  major  airlines  magazines  in  September 
2009),  web  pages  (2007,  revised  in  August  2009)  and  an  animation  clip  (in  2007, 
revised in November 2009, in 7 languages) have been developed and disseminated. 
Similar  tools,  such  as  posters,  web  pages,  information  to  stakeholders  or  press 
releases on detections, were issued at national level.  

The  general  impression  is  that  the  communication  actions  on  cash  controls  have 
significantly  contributed  to  the  awareness  of  travellers  to  the  obligation  to  declare 
cash,  although  only  4  Member  States  monitored  the  results  of  the  communication 
campaign  and  in  none  of  the  cases  monitoring  tools  were  used  to  measure  the 
efficiency or effectiveness of the communication campaigns.  

There  is  no  explicit  obligation  in  the  Cash  Control  Regulation  to  set  up  a 
communication  campaign  but  nearly  all  MS  have  recognised  that  communication 
actions  needed  to  be  taken.  17  MS  inform  they  make  use  of  a  permanent 
communication  campaign  on  cash  control  to  ensure  a  constant  awareness  raising. 
Some MS see the need for including an obligation to raise awareness on cash control 
in the  Regulation as this would  ease contacts with airport authorities to display the 
awareness raising material. 

3.2.2. 

Place to declare  

The  Cash  Control  Regulation  requires  natural  persons  to  declare  cash  to  the 
competent authorities of the MS through which they are entering or leaving the EU. 
In general this requirement does not pose problems to the MS.  

Transit 

For air transit passengers the obligation to declare cash at the first point of entering 
or the last port of leaving the EU is difficult to comply with due to the variations in 
airport  transit  infrastructure.  There  are  few  or  different  facilities  provided  for 
declaring cash in transit zones and there is not enough time in-between flights.  

For  the  competent  authorities  of  the  MS  it  is  also  difficult  to  ensure  harmonised 
controls on transit passengers. Insufficient time, lack of appropriate control facilities 
due to differences in airport transit infrastructure and separate channels for hand and 
hold luggage hamper these controls.  

A specific project group of cash control experts has worked on this issue and reached 
the conclusion that a revision of article 3 of the Cash Control Regulation appears to 
be necessary to align the procedures for controls on cash with those established for 
controls  of  passengers’  baggage  as  set  out  in  articles  192  to  194  of  Commission 
Regulation  (EEC)  No  2454/93  of  2  July  1993  laying  down  provisions  for  the 
implementation  of  Council  Regulation  (EEC)  No  2913/92  establishing 
the 
Community Customs Code6.  

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OJ L 253, 11.10.1993 p. 1 – 766. 

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3.2.3. 

Methods to declare  

The Cash Control Regulation allows for the information of the cash declaration to be 
provided for in writing, orally or electronically. Most Member States have opted for 
written  declarations.  Only  DK,  AT  and  ES  allow  for  an  oral  declaration,  which  is 
transformed by customs into a written document. AT (for professional cash couriers 
only),  ES  and  PL  allow  for  electronic  declarations  to  be  lodged.  For  the  second 
quarter  2009,  90  %  of  the  cash  declarations  have  been  made  in  writing,  9.7  % 
electronically,  0.3  %  orally.  All  MS  have  established  forms  that  foresee  the 
submission  of  all  minimum  data  elements  required  under  article  3.2  of  the  Cash 
Control Regulation.  

The initial implementation phase showed that making use of a common declaration 
form  would  be  an  important  contribution  to  improve  the  (electronic)  exchange  of 
information  on  cash  declarations.  Furthermore 
the 
understanding  by  international  travellers  on  what  is  expected  from  them,  thus 
improving compliance with the requirements. 

it  would  also  enhance 

For that purpose a European  Common Declaration  Form (CDF)  was  developed.  16 
MS now make use of this form: AT, CY, DK, EE, EL, FI, HU, IE, LU, MT, NL, PL, 
PT, RO, SE and SI. Other MS are considering implementing the CDF in the future 
(BG, DE, LV, SK) or are already using forms that have strong similarities with the 
CDF:  ES,  FR,  LT.  In  almost  all  MS  cash  declarations  are  accepted  and  can  be 
completed in the official languages of the country in which one has to declare, and 
also  in  English.  Some  MS  accept  and  allow  the  cash  declaration  form  to  be 
completed in other widely spoken EU languages. 

3.2.4. 

Statistics on the cash declarations  

There  is  no  explicit  requirement  in  the  Cash  Control  Regulation  to  provide  for 
statistics.  MS  have  nevertheless  agreed  to  send  their  statistics  on  cash  declarations 
submitted  and  control  results  obtained  to  the  COM7.  Incorrect  cash  declarations  or 
findings as the result of controls are referred to as "recordings" in the statistics (see 
details under 3.4.2.). 

Annex  1  provides  for  statistics  on  cash  declarations  and  recordings  gathered  by  all 
MS between 15 June 2007 and 30 June 2009.  

In  this  period  the  MS  have  received  178  351  cash  declarations  for  a  total  amount 
equivalent to 79 922 million €. The cash decl arations gathered on entering amounted 
to a number of 101 824, on leaving to a number of 76 527.  

Annex 2 provides a graphical overview of the MS' reporting on the number of cash 
declarations gathered and shows important differences.  

For the reported period DE, IT and FR counted for respectively 25 %, 22,5 % and 13 
% of the total number of cash declarations received, followed by ES (9 %),LT (4,5 
%), PL (4 %), UK (3,5 %) and BG (3 %). 

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This agreement foresees that MS send cash statistics that do not include data regarding intra EU cash 
declarations and controls.  

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Continued  monitoring  of  these  statistics  is  necessary  to  enhance  harmonised 
implementation of cash controls in the MS.  

Annex  3  shows  that  the  number  of  cash  declarations  made  in  the  MS  have  rapidly 
grown up to the end of 2008 (from 13 196 cash declarations in the 3rd quarter of 2007 
to 28 210 cash declarations in the last quarter of 2008). Figures dropped to 27 236 
cash  declarations  in  the  2nd  quarter  of  2009.  The  same  pattern  can  be  observed  in 
Annex  4  for  the  amount  in  €  equivalent  co vered  by  these  cash  declarations  (5  432 
million € in the 3 rd quarter of 2007, 13 051 million € in  the last quarter of 2008, 9 
496  million  €  in  the  2 nd  quarter  of  2009).  It  is  very  likely  that  the  number  of  cash 
declarations and amount of € covered by th ese cash declarations have followed the 
general decline in economic activity in 2009 related to the banking crisis.  

In the second quarter of 2009, more than 63 % of the cash declarations were made at 
airports, 30 % at road borders, 5 % at ports and 2 % at rail crossings. 86,2 % of the 
cash declarations were declared by private cash couriers, 13,8 % by professional cash 
couriers.  

3.3. 

Information on empowerment of national authorities for control  

3.3.1. 

Control competences in the Member States 

Controls  in  MS  focus  on  the  submitted  declarations,  passengers,  luggage  and  the 
means of transport. All MS report that they carry out physical verifications. Nearly 
all  MS  make  use  of  scanning  equipment.  The  use  of  trained  sniffer  dogs  for  cash 
controls is reported by 4 MS.  

In  order  to  ensure  efficient  and  effective  controls,  the  use  of  an  adequate  risk 
management  strategy  is  crucial.  12  MS  report  on  the  use  of  a  specific  national 
strategy related to cash controls. Other MS report on the use of risk analysis criteria 
for cash control in the main points of entrance and exit. 17 MS indicate they apply 
risk  profiling  for  cash  control  and  18  MS  make  use  of  intelligence  alerts  on  cash 
controls,  either  by  receiving  and/or  issuing  these  kinds  of  alerts.  4  MS  report  to 
organise national joint targeting actions with other competent authorities.  

3.3.2. 

Control results 

The recordings registered by MS (see Annex 1) amount to 13 019 cases and account 
for  1  632  million  €.  The  following  MS  account  for  the  majority  of  recordings 
detected: DE (40 %), FR (20 %), IT (12 %), UK (10 %), NL (6 %), PT (4 %), ES (4 
%).  The  graphical  overview  provided  for  in  Annex  5  on  the  number  of  recordings 
show these important differences. 

Several  MS  report  none  or  few  recordings.  In  some  cases  this  reflects  more  the 
impossibility for MS to retrieve data centrally than an actual lack of controls carried 
out  (see  information  under  3.4.2).  Other  MS  report  a  very  high  proportion  of 
recordings compared to the number of spontaneous cash declarations submitted (see 
Annex 6). Closely monitoring of the control results will allow for the detection and 
follow up of possible differences in control approach between MS, thus allowing for 
possible adjustments to ensure full harmonisation of this control approach by MS. 

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The  number  of  recordings  increased  steadily  from  552  cases  for  the  3rd  quarter  of 
2007  to  2300  cases  in  the  2nd  quarter  of  2009  (see  Annex  7).  The  amount  in  € 
equivalent involved in these recordings, detailed in Annex 8, was fairly stable over 
this period with the exception of the recordings in the last quarter of 2008 due to one 
finding of a non-declared bearer negotiable instrument with a high value in Germany 
(33 million € in the third qua rter in 2007, 1 149 million € in  the last quarter of 2008, 
72,5 million € in the second quarter of 2009).  

3.4. 

Information on the recording and processing  

3.4.1. 

Registration and processing of cash declarations 

All MS report that they register information on the cash declarations. 14 MS register 
in  an  automated  central  database.  In  most  cases  this  is  a  stand  alone  database  at 
central level, sometimes directly accessible for the national FIU (for 2 MS the central 
database  is  held  by  the  national  FIU).  In  most  cases  the  information  registered  is 
currently not directly retrievable by other competent authorities such as the national 
FIU.  

The  MS  that  have  reported  not  to  have  automated  the  registration  of  cash 
declarations most commonly refer to the use of excel files or a local database.  

3.4.2. 

Registration  and  processing  of  non-voluntary  cash  declarations  and  information 

obtained as the result of controls 

25  MS  notify  that  they  register  and  process  the  information  obtained  from  the 
controls  of  cash  carried  out.  1  MS  notifies  not  to  file  this  type  of  information 
although article 5 of the Cash Control Regulation explicitly requires MS to do so. 12 
MS  register  in  an  automated  central  database.  The  other  MS  register  in  databases 
held  in  the  local  customs  control  posts.  1  MS  notifies  that  only  the  irregularities 
detected  are  registered  and  another  that  only  results  of  thorough  controls  are 
registered.  

3.4.3. 

Registration and processing of information on cash detained 

Procedures  for  the  detention  of  cash  are  not  compulsory  as  article  4  of  the  Cash 
Control Regulation indicates that cash MAY be detained by administrative decision. 
23  MS  report  to  register  and  process  the  information  on  cash  detained.  SE  and  FR 
inform they are not registering this type of information. No information is available 
for PL and BE.  

15 MS (AT, BG, CY, DE, EE, ES, FI, IE, IT, LV, LT, NL, PT, SL and UK) register 
the  cash  detained  in  a  central  database.  7  MS  (DK,  EL,  LU,  HU,  RO,  SK  and  SE) 
refer  to  a  database  held  in  the  local  customs  posts  whereas  CZ  transmits  this 
information directly to the national FIU.  

MS  currently  do  not  provide  statistics  on  cash  detained  to  the  COM.  In  the  near 
future a new module of the OLAF Customs information system (CIS) will allow MS 
to introduce all information related to the detention of cash. 

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3.5. 

Information made available to the Financial Intelligence Units 

21  MS  make  all  information  on  cash  declarations  spontaneously  available  to  their 
national  FIU.  Only  FI,  IT  and  UK  report  to  make  this  information  available  on 
demand,  whereas  CY  and  HU  only  provide  information  on  suspicious  cases  to  the 
national  FIU.  The  information  is  made  available  to  the  FIU  via  mail,  post,  official 
letter  or  immediate  access  to  the  database  of  cash  declarations.  Periodicity  of 
providing  this  information  varies  from  immediate  transmission  via  direct  access  to 
the  databases,  to  daily,  weekly  or  monthly  or  at  a  maximum  periodicity  of  three 
monthly or quarterly bases (2 MS).  

Some  MS  report  faster  procedures  to  inform  national  FIU's  when  the  information 
relates to the detection of suspicious cash movement. 

Most MS (AT, BG, CY, CZ, DE, DK, EE, EL, FI, HU, IE, IT, LU, MT, NL, RO, SK, 
SL, SE and UK) report to make available information on suspicious cash declarations 
to the national FIU (no information on BE, FR, PL and PT). Some MS (LV, DE, LT) 
make the information available to the national FIU by having organised direct access 
of the national FIU to the database with all information on the cash declarations. ES 
and the NL already maintain the central database on cash information at the national 
FIU.  

The  national  differences  in  organisation  of  the  FIU  and  relations  with  the  other 
competent  authorities  make  it  difficult  to  suggest  more  harmonised  procedures  for 
information exchange between customs and FIU.  

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Smurfing 

16  MS  report  to  apply  specific  controls  on  movements  of  sums  of  cash  under  the 
threshold of 10 000 € where there are indicati ons of illegal activities associated with 
the  movement  of  cash,  commonly  referred  to  as  "smurfing".  This  possibility  is 
provided for in article 5.2 of the Cash Control Regulation. Most MS also make this 
information available to the national FIU. 

3.6. 

Exchange of information amongst Member States and with the Commission 

In  the  absence  of  a  Committee  that  can  assist  the  COM  in  the  management  of  the 
Cash Control Regulation, the COM has set up a permanent working group with all 
Member States that meets 3 times a year. This working group is financed under the 
Customs 2013 framework programme which finances cooperation activities between 
MS  and  the  COM.  The  working  group  focuses  on  enhancing  the  exchange  of 
information,  harmonising  procedures,  establishing  best  practices  and  creating  an 
the 
appropriate  environment 
implementation of the Cash Control Regulation. The handbook of Guidelines on cash 
controls,  recently  adopted  by  this  working  group,  has  been  developed  for  this 
purpose.  
MS and COM could benefit from a Committee procedure, to ensure a higher level of 
establishing harmonisation.  

to  exchange  views  on 

for  MS  authorities 

In  addition,  a  specific  virtual  interest  group  was  created  in  a  secured  extranet  tool, 
allowing public administrations to share information and to participate in discussion 
forums.  It  contains  also  information  on  MS  central  contact  points  and  24  hour 
contact  points  to  allow  for  a  quick  exchange  of  information  amongst  competent 
authorities. MS are responsible for updating this information.  

3.6.1. 

Exchange of information amongst Member States 

MS  report  to  exchange  information  on  cash  controls  using  a  wide  range  of  means. 
This  includes  the  OLAF  Anti-Fraud  Information  System  (AFIS),  established  by 
Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between 
the administrative authorities of the MS and cooperation between the latter and the 
Commission to ensure the correct application of the law on customs and agricultural 
matters8. MS also exchange risk information through the electronic Risk Information 
System (RIF) established under the Community Customs Risk Management System 
under  Council  Regulation  (EEC)  No  2913/92  of  12  October  1992  establishing  the 
Community  Customs  Code9.  Direct  contacts  via  the  central  contact  points  for  cash 
control,  between  operational  customs  offices,  via  intelligence  departments,  law 
enforcement contact points or the fiscal crime liaison officer network, and the use of 
specific Europol IT applications are also mentioned.  

In  the  context  of  the  Council  Customs  Cooperation  Working  Party,  MS  regularly 
organise joint targeting actions. A Joint Customs operation on cash controls on cash 
couriers called "Athena" was organised during the French presidency. 

8 
9 

OJ L. 82, 22.03.1997, p. 1 – 16. 
OJ L. 302, 19.10.1992, p. 1 – 50. 

EN 

11 

   EN 

                                                 
3.6.2. 

Exchange of information with the Commission 

All  MS  provide  statistics  on  the  implementation  of  the  Cash  Control  Regulation  to 
the COM on a quarterly basis. These statistics are processed and made available to 
all MS. 

MS provide the COM with the information of cases where there are indications that 
the sums of cash involve the proceeds of crime or any other illegal activity adversely 
affecting the financial interests of the EU via AFIS. The CIS module that is part of 
the  AFIS  system  will  allow  MS  to  include  information  on  cash  detained,  seized  or 
confiscated. In the Customs Files Identification Database (FIDE) of the AFIS system 
information  related  to  investigations  launched  by  customs  enforcement  authorities 
has  to  be  introduced  allowing  for  verifications  whether  a  person  (or  business)  has 
been  subject  to  a  criminal  investigation  in  one  of  the  MS.  Few  cases  have  been 
uploaded in FIDE whereas the CIS module is not yet operational. 

3.6.3. 

Statistics on information exchange  

For cases where there are indications that the sums of cash declared or detected are 
related  to  any  illegal  activity  associated  with  the  movement  of  cash,  MS  can 
exchange  information  according  to  article  6  of  the  Cash  Control  Regulation.  MS 
have  notified  few  cases  and  indicate  that  their  quantification  is  difficult  because 
information  is  generally  exchanged  on  an  ad  hoc  basis  via  direct  contacts  between 
enforcement  officers  on  which  the  central  services  are  not  informed.  The  COM, 
recognising  the  importance  of  adequate  information  exchange,  has  set  up  a  project 
group with MS to enhance the exchange of information.  

3.7. 

Exchange of information with third countries  

The  Cash  Control  Regulation  does  not  impose  exchanging  information  with  third 
countries. MS have done so via international mutual assistance agreements, bilateral 
agreements, direct contact with central contact points in third countries, the customs 
enforcement  network  and  via  the  fiscal  crime  liaison  officer  network.  Exchange  of 
information via the national FIU is also mentioned.  

The  COM  communicated  general  information  on  the  systems  in  place  in  the 
framework of the FATF. 

Best  practices  and  experiences  were  exchanged  with  the  US  in  a  special  EU/US 
meeting of the Customs 2013 Cash Control Working Group in April 2008.  

3.8. 

Confidentiality/data protection issues / security issues  

In all MS the following legislation is applicable:  

Directive  95/46/EC  of  the  European  Parliament  and  of  the  Council  of  24  October 
1995 on the protection of individuals with regard to the processing of personal data 
and on the free movement of such data10, and 

10 

OJ L. 281, 23.11.95, p. 31 – 39. 

EN 

12 

   EN 

                                                 
Commission Decision of 29 November 2001 (2001/844/EC, ECSC, Euratom). This 
decision sets down the rules for the classification of information with the objective to 
guarantee the security of information11. 

11 

OJ L. 317, 3.12.2001, p. 1. 

EN 

13 

   EN 

                                                 
General confidentiality provisions / Professional Secrecy provisions. 

Most MS (AT, BG, CY, CZ, DE, EL, ES, FI, FR, EE, HU, IE, IT, LV, MT, PL, RO, 
SE, SL and UK) report on specific data protection measures taken for data exchange 
related to cash controls. No information is available for BE, LU, PT. In reality, most 
MS  apply  general  measures  on  the  protection  of  personal  data.  Furthermore,  very 
few MS report on measures taken on data classification to guarantee the security of 
the  information.  Four  MS  (DK,  LT,  NL  and  SK)  indicate  that  the  general  data 
protection, data security and confidentiality measures also apply to cash control data.  

It  can  be  concluded  that  most  MS  ensure  a  general  minimum  of  confidentiality  or 
protection  of  the  personal  data  of  the  cash  control  information.  Few  MS  have 
adopted  specific  measures  for  cash  control  to  ensure  the  protection  of  the  personal 
data included or have classified cash control information to ensure the security of the 
information.  

3.9. 

Penalties  

All MS have introduced requirements that establish penalties in the event of failure 
to comply with the obligation to declare. The penalties of most MS can be considered 
proportionate, dissuasive and effective, except for a few MS where the amount of the 
administrative penalty seems too low to be dissuasive. The COM has asked these MS 
to quickly rectify this situation.  

18  MS  can  apply  further  penalties  than  the  strict  administrative  penalties  as 
stipulated  by  article  9  of  the  Cash  Control  Regulation.  These  sanctions  include 
seizure  or  retention  of  cash  in  case  of  suspicion  of  illegal  activity,  (higher)  fines, 
imprisonment or confiscation of the cash. 

MS are not required to send statistics on penalties imposed to the COM. However the 
ad  hoc  information  that  is  available  confirms  that  most  MS  have  actually  imposed 
penalties.  

4. 

CONCLUSIONS 

The  contributions  received  by  the  MS  show  that  the  recent  implementation  of  the 
Cash  Control  Regulation  is  generally  satisfactory.  MS  have  organised  competent 
authorities as to ensure that passengers comply with their obligation to declare, cash 
declarations  are  processed  and  controls  are  carried  out  on  passengers,  the  luggage 
and the means of transport. They also have put in place a penalty system and/or cash 
detention system for cases of non-compliance with the cash declaration requirements. 
MS have organised themselves to ensure that the information gained from the cash 
declaration system is made available to the national FIU. They exchange information 
where  relevant  with  other  MS,  COM  and  third  countries,  whilst  complying  with 
confidentiality  and  data  protection  standards.  Considering  the  differences  between 
MS in cash declarations gathered and controls performed, a close monitoring of MS 
is necessary to enhance the harmonisation of the implementation of the Cash Control 
Regulation  by  the  MS.  Where  necessary,  MS  will  be  required  to  take  remedial 
actions. 

EN 

14 

   EN 

In a few MS some shortcomings have been detected in the recording, processing and 
making available of control information and in the introduction of national penalties. 
The  COM  is  taking  the  necessary  action  to  ensure  that  the  EU  legislation  on  cash 
controls is appropriately implemented in all MS.  

5. 

RECOMMENDATIONS  

The  experience  gained  from  the  practical  implementation  of  the  Cash  Control 
Regulation,  has  led  to  conclude  that  a  thorough  review  of  the  Regulation  is  NOT 
necessary.  

However  it  does  show  that  some  adjustments  to  the  cash  control  regulatory 
framework could be considered:  

revising  article  3  of  the  Cash  Control  Regulation  to  cater  for  the  practical  control 
difficulties of MS with regard to transit passengers; 

introducing  a  Common  EU  Cash  Declaration  Form,  based  on  the  Common 
Declaration  Form  currently  in  use  by  the  majority  of  MS  to  allow  for  further 
travellers'  awareness  and  possible 
harmonisation  of 
computerization;  

the  data  gathered, 

inserting  compulsory  (quarterly)  reporting  requirements  to  the  COM  on  statistics 
gathered  by  MS,  to  ensure  the  monitoring  of  the  effectiveness  of  the  Cash  Control 
Regulation.  These  reporting  requirements  are  currently  based  on  voluntary 
agreements;  

inserting  a  compulsory  requirement  to  raise  awareness  on  the  cash  declaration 
obligation. At present all communication actions are taken on a voluntary basis; 

introducing a Committee procedure to institutionalise the discussions with MS on the 
management of the Cash Control Regulation; 

envisaging  a  COM  implementing  Regulation  for  technical  elements  such  as  the 
format of the Common Declaration Form or the content of reporting requirements;  

Greater  harmonisation  could  already  be  achieved  by  exchanging  best  practices  and 
by enhancing harmonisation of procedures via soft law, like guidelines or technical 
agreements between the Member States via the Cash Control Working Group.  
In order to achieve complete harmonisation of cash controls on entering and leaving 
the EU it would be necessary to amend the Cash Control Regulation. 

EN 

15 

   EN 

ANNEX 1: 

Summary statistics of cash declarations and cash recordings 
- all Member States - 
Q3 2007 – Q2 2009 

IT, PL and GR did not submit data for cash controls for Q3 and Q4 2007. 
BE did not submit data for Q3 2007  

EN 

16 

   EN 

 
ANNEX 2: 

Number of Cash declarations 
– all Member States -  
Q3 2007 to Q2 2009  

30000

25000

20000

15000

10000

5000

0

Entering 
Leaving 

AT BE DE DK EE FI

LU MT PT RO SE SI SK LT BG IE CS CY UK FR NL LV HU GR IT PL ES

IT, PL and GR did not submit data for cash controls for Q3 and Q4 2007.  
BE did not submit data for Q3 2007.  

EN 

17 

   EN 

 
ANNEX 3:  

The evolution of the number of cash declarations 
– totals –  
Q3 2007 to Q2 2009 

IT, PL and GR did not submit data for cash controls for Q3 and Q4 2007.  
BE did not submit data for Q3 2007. 

EN 

18 

   EN 

 
ANNEX 4: 

The evolution of cash declarations in € equivalent 
– totals –  
Q3 2007 to Q2 2009 

IT, PL and GR did not submit data for cash controls for Q3 and Q4 2007.  
BE did not submit data for Q3 2007. 

EN 

19 

   EN 

 
ANNEX 5: 

Number of cash recordings 
– all Member States –  
Q3 2007 to Q2 2009 

IT, PL and GR did not submit data for cash controls for Q3 and Q4 2007.  
BE did not submit data for Q3 2007.  

EN 

20 

   EN 

 
ANNEX 6: 

The proportion between cash recordings and the total number of cash declarations 
– all Member States –  
Q3 2007 to Q2 2009 

IT, PL and GR did not submit data for cash controls for Q3 and Q4 2007.  
BE did not submit data for Q3 2007.  

EN 

21 

   EN 

 
ANNEX 7:  

The evolution of the number of cash recordings 
– totals – 
Q3 2007 – Q2 2009 

IT, PL and GR did not submit data for cash controls for Q3 and Q4 2007.  
BE did not submit data for Q3 2007.  

EN 

22 

   EN 

 
ANNEX 8: 

The evolution of cash recordings in € equivalent 
– totals – 
Q3 2007 – Q2 2009 

IT, PL and GR did not submit data for cash controls for Q3 and Q4 2007.  
BE did not submit data for Q3 2007.  

EN 

23 

   EN