Opinion of the European Central Bank of 1 February 2013 on limitations on cash payments (CON/2013/9)
Date: 2013-02-01
Institutions: European Central Bank
Subjects: Denmark, fight against crime, money, money laundering, national law, payment, terrorism financing

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 laundering and financing of terrorism 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 indent 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,  inter  alia, to means of payment. 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 providing the best possible 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 
terrorism2. 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 consideration the need for citizens to retain 
access to cash payments and the risk of money 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  
2  

3  
4  

5  
6  
7  

OJ L 189, 3.7.1998, p. 42.   
§ 12 of the draft law which amends § 1(2) and § 2 of the Law on measures to prevent money laundering and financing of 
terrorism. 
§ 2 of the Law on measures to prevent money laundering and financing of terrorism.  
§  1(2)  of  the  Law  on  measures  to  prevent  money  laundering  and  financing  of  terrorism.  The  scope  is  extended  to  all 
economic operators not covered by the investigation and information obligations in the law. 
§ 12 of the draft law. 
Point 12.2.2 of the Explanatory Memorandum of the draft law. 
§ 8(2) of the Law on Danmarks Nationalbank. 

 
 
 
 
                                                 
 
ECB-PUBLIC 

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 euro8, 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’9. The ECB acknowledges that: (i) 

such  other  lawful  means  for  the  settlement  of  monetary  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  should  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 should ensure that the 

effects  of  these  measures  do  not  go  beyond  what  is  necessary  for  achieving  the  objective  of 

combating money laundering and 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  
9  

OJ L 139, 11.5.1998, p. 1. 
See most recently Opinion CON/2012/83. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 

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