Opinion of the European Central Bank of 31 October 2012 on restrictions on cash payments (CON/2012/83)
Date: 2012-10-31
Institutions: European Central Bank
Subjects: Slovakia, fight against crime, money, national law, payment system, tax offence

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 third 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 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 draft law aims at combating tax fraud and evasion2 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 persons 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  the  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 making the payment is the State or another public 
authority or where there is a compelling reason for the exemption7.   

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6  
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OJ L 189, 3.7.1998, p. 42.   
See the first and second paragraphs of the general part of the explanatory memorandum to the draft law. 
Article I, Section 4(1) of the draft law. 
Article I, Section 4(2) of the draft law. 
Article I, Section 7 of the draft law. 
Article I, Section 8 of the draft law. 
See point (c) of the sixth paragraph of the general part of the explanatory memorandum to the draft law.  

 
 
 
 
                                                 
ECB-PUBLIC 

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 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  euro11,  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 settlements 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  public  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  authorities  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  
9  
10  
11  
12  

Article I, Section 5 of the draft law. 
EUR 10 000 in the case of  offences committed by natural persons not registered as sole traders. 
Article II of the draft law. 
OJ L 139, 11.5.1998, p. 1. 
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 

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