Opinion of the European Central Bank of 18 March 2013 on the limitation of cash payments (CON/2013/18)
Date: 2013-03-18
Institutions: European Central Bank
Subjects: Belgium, fight against crime, money, national law, payment, tax offence

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 18 March 2013 

on the limitation of cash payments  

(CON/2013/18) 

Introduction and legal basis 

On 21 February 2013, the European Central Bank (ECB) received a request from the Nationale Bank van 

België/Banque Nationale de Belgique (NBB), acting on behalf of the Belgian Ministry of Finance and the 

Belgian Ministry of Interior Affairs, for an opinion on a draft law providing for urgent measures to fight 

against fraud (hereinafter the ‘draft law’).  

The ECB’s competence to deliver an opinion is based on Article 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 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   Further  to  the  revision  of  the  recommendations  of  the  Financial  Action  Task  Force  on  Money 
Laundering (FATF) in February 20122, the draft law amends the criteria for identifying tax fraud, 

which triggers the application of the Law of 11 January 1993 on the prevention of the use of the 

financial  system  for  money  laundering  and  terrorist  financing  (hereinafter  the  ‘Law  on  money 

laundering’). Article 5(3) and Article 28 of the Law on money laundering currently refer to ‘serious 

and organised tax fraud, which sets in motion complex mechanisms or which uses processes with 

an international dimension’. Under the draft law, this is changed to ‘serious tax fraud, organised or 

not’.  This  change  will  also  be  reflected  in  the  provisions  of  the  Penal  Code  on  confiscation  and 

concealment. The explanatory memorandum states that this would make it possible to prosecute the 

laundering of the proceeds from serious tax fraud which is not organised, but nonetheless may be 

classified as serious given the amounts at stake.  

1  
2  

OJ L 189, 3.7.1998, p. 42.  
International  standards  on  combating  money  laundering  and  the  financing  of  terrorism  and  proliferation,  FATF 
Recommendations, February 2012.   

 
 
 
 
                                                 
ECB-PUBLIC 

1.2  The draft law also clarifies the scope of the prohibition of cash payments under Article 21 of the 

Law  on  money  laundering.  Currently,  a  merchant  may  receive  up  to  10%  and  not  more  than 

EUR 5 000  of  the  sales  price  for  goods  or  services  in  cash,  whether  the  sale  takes  place  in  one 

operation or in the form of separate operations which appear linked. Article X+1 of the draft law 

provides that a trader in precious metals may pay up to 10% and not more than EUR 5 000 in cash 

when purchasing precious metals, whether the purchase takes place in one operation or in the form 

of separate operations which appear linked. From 1 January 2014, the amount which may be settled 

in cash shall be lowered to EUR 3 000. Precious metals are currently defined in Article 69(2) of the 

Law  of  29  December  2010  laying  down  various  measures  with  reference  to  gold,  silver  or 

platinum, with the exclusion of coins.  

1.2.1  The breach of the abovementioned limitations of payments is sanctioned by a fine from EUR 250 

to EUR 225 000, whose effective amount may not exceed 10% of the price unduly paid in cash. 
Both the debtor and the creditor are jointly liable for any fine3.  

1.2.2  The  King  will  identify  in  a  Royal  Decree  the  list  of  merchants  and  service  providers  (including 

those  involved  in  precious  metal  transactions)  who  must  inform  the  Financial  Information 
Processing Unit of any case of breach of the cash limitation4.  

1.3 

In  order  to  curb  the  increased  theft  of  copper  wire,  the  Law  of  29  December  2010  laying  down 

various measures will also be amended in order to prohibit using cash to purchase copper cables 

that  are  recycled,  used  or  offered  as  such,  by  natural  or  legal  persons  active  in  the  recuperation, 

recycling  and  trade  in  precious  metals.  Natural  and  legal  persons  active  in  the  recuperation, 

recycling and trade in old metals or precious metals are required to identify and register the natural 

or legal person who buys the metals if those purchases are paid for in cash for an amount of more 

than EUR 500.  

2.   General observations 

2.1  As emphasised in ECB Opinions CON/2002/24 and CON/2003/25 in respect of previous versions 

of  the  Law  on  money  laundering  and  recital  19  of  Council  Regulation  (EC)  No  974/98  of 
3 May 1998  on  the  introduction  of  the  euro5,  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’.  In  addition,  limitations  on  payments  in  cash  should  be  proportionate  to  the 

objectives pursued and should not go beyond what is necessary to achieve such objectives.  

2.2  The  European  Commission  is  currently  reviewing  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 

3  
4  
5   

Article 41 of the Law on money laundering.  
Article 21(4) paragraph of the Law on money laundering. 
OJ L 139, 11.5.1998, p. 1. 

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ECB-PUBLIC 

system  for  the  purpose  of  money  laundering  and  terrorist  financing6,  which  was  implemented  in 

Belgium  by  the  Law  on  money  laundering.  This  review  may  potentially  lead  to  the  lowering  of 

thresholds triggering a declaration in respect of the underlying transactions.    

3.  

Specific observations 

3.1  The ECB was not consulted on the Law of 29 March 2012 amending the Law on money laundering, 

which  lowered  the  upper  threshold  for  settlement  of  payments  in  cash  from  EUR  15  000  to 

EUR 5 000 (and EUR 3 000 from 1 January 2014). The legislative framework as amended by the 

draft law results in limitations on payments in cash which would be quite extensive.   

3.2  The ECB understands, however, that: (a) lawful means for the settlement of monetary debts, other 

than cash, are available in Belgium; and (b) the draft law’s objectives of combating tax fraud and 

curbing  of theft of copper qualify  as  public  reasons  outweighing  the impact  of  the  limitations on 

cash payments. 

3.3  With  a  view  to  introducing  some  flexibility  in  the  Law  on  money  laundering,  the  ECB  would 

recommend allowing payments in cash for compelling reasons or for reasons beyond the control of 
a customer7.  

3.4  The  ECB  would  also  recommend  weighting  the  measures  proposed  in  the  draft  law  against  the 

public  benefits  expected  to  be  derived  from  them  in  order  to  ensure  that  the  effects  of  those 

measures do not go beyond what is necessary for achieving the objective of combatting tax fraud 

and criminal activity in relation to precious metals. The ECB assumes that such weighting would be 

conducted by the King, when enacting the list of merchants and service providers who must pass to 

the  Financial  Information  Processing  Unit  information  on  transactions  carried  out  in  breach  of 

Article 21 of the Law on money laundering, following an opinion of the Financial Processing Unit 
and after consultation of the representatives of the sectors at stake8. 

This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 18 March 2013. 

[signed] 

The President of the ECB 

Mario DRAGHI  

6  
7  
8  

OJ L 309, 25.11.2005, p. 15. 
See CON/2012/83 and CON/2013/11. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 
See Article 21, paragraph 4 of the Law on money laundering.  

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