Opinion of the European Central Bank of 30 May 2017 on the limitation of cash payments (CON/2017/20)
Date: 2017-05-30
Institutions: European Central Bank
Subjects: Belgium, fight against crime, money, money laundering, national law, payment, terrorism financing

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 30 May 2017 

on the limitation of cash payments  

(CON/2017/20) 

Introduction and legal basis 

On  3  April  2017  the  European  Central  Bank  (ECB)  received  a  request  from  the  Belgian  Ministry  of 

Finance for an opinion on a draft law on the prevention of money laundering and terrorist financing, and 

the limitation of 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/EC1, as the draft law contains provisions concerning means of payments and the Nationale Bank 

van België/Banque Nationale de Belgique (‘NBB’). 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 main purpose of the draft law is to implement into Belgian law  Directive (EU) 2015/849 of the 
European  Parliament  and  of  the  Council2.  The  Belgian  legislator  has  taken  this  opportunity  to 

consolidate in the draft law, and if necessary amend, provisions of relevance in this field, including 

the limitation of cash payments and the provisions defining the NBB’s powers in this field. 

1.2. 

In particular, all rules on the limitation of cash payments, which are currently set out in the Law of 

11  January  1993  on  the  prevention  of  the  use  of  the  financial  system  for  money  laundering  and 

terrorist  financing  and  the  Law  of  29  December  2010  laying  down  various  measures,  are  now 

moved into the draft law.  

1.3.  Under  these  rules,  which  were  last  amended  by  the  Law  of  15  July  2013  containing  urgent 
provisions on the fight against fraud3, merchants may currently receive in cash up to 10 % and not 

more than EUR 3 000 of the sale price of goods or services, whether the sale takes place in one 

operation  or  in  separate  operations  which  appear  linked.  The  same  limitation  of  cash  payments 

1  

2  

3 

Council  Decision  98/415/EC  of  29  June  1998  on  the  consultation  of  the  European  Central  Bank  by  national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42).  
Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use 
of  the  financial  system  for  the  purposes  of  money  laundering  or  terrorist  financing,  amending  Regulation  (EU)  No 
648/2012  of  the  European  Parliament  and  of  the  Council,  and  repealing  Directive  2005/60/EC  of  the  European 
Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73). 

See Opinion CON/2013/18.  

 
 
 
 
 
                                                 
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applies to the sale and purchase by traders of precious metals (defined as gold, silver or platinum, 

with  the  exclusion  of  coins).  Furthermore,  to  curb  the  increasing  theft  of  copper  wire,  the 

abovementioned  Law  of  29  December  2010  specifically  prohibits  payment  in  cash  for  copper 

cables,  whether  recycled  or  used  or  presented  as  such,  by  natural  or  legal  persons  active  in  the 

recuperation and recycling of and trade in old or precious metals. Finally, natural and legal persons 

active  in  the  recuperation,  recycling  and  trade  in  old  or  precious  metals  are  required,  if  they  sell 

such metals to natural or legal persons, to identify and register the person who buys them if those 

purchases are paid for in cash in an amount over EUR 500. 

1.4.  The draft law expands the limitations on cash payments to all cash payments made by any person, 

without distinction as to the (contractual or extracontractual) nature of the obligations that give rise 

to such payments, the existence (or not) of consideration, the persons carrying out such payments 

or the capacity (merchant, trader or other) in which such persons act. According to the explanatory 

memorandum  to  the  draft  law,  the  purpose  of  this  amendment  is  to  capture  various  situations  in 

which  cash  payments  are  sometimes  substantial  (exchange  transactions  with  a  supplement, 

specifically involving gold).  

1.5.  Exceptions  are,  however,  made  in  respect  of  (1)  real  estate  transactions,  which  involve  notaries 

and  real  estate  agents,  to  whom  the  draft  law  applies;  (2)  transactions  between  consumers,  to 

whom the draft law does not apply, and who rarely conduct operations relating to high value goods 

and  who  may,  in  any  case,  not  be  subject  to  systematic  monitoring;  and  (3)  payment  in  cash  or 

gifts effected by or with financial institutions, including credit institutions, the NBB, Bpost, payment 

institutions,  issuers  of  electronic  money,  exchange  offices,  stock  market  companies  and  bureaux 

de change, as operations involving cash are inherent to their activities.  

1.6.  The draft law also redefines the thresholds for the limitation of cash payments which may now be 

made up to EUR 3 000. In particular, the draft law waives the criterion of 10 % of the price of goods 

or services. Furthermore, the cap of EUR 3 000 no longer relates to the amount to be paid, but to 

the amount effectively paid or given in cash. Thus, a payment or gift of EUR 5 000 may be effected 

and received in cash up to EUR 3 000, provided that the remaining balance is effected or received 

in  another  way.  This  relaxation  of  the  rule  is  justified  by  the  low  threshold  of  EUR  3  000  and  the 

complexity  of  the  current  rule,  which  is  disadvantageous  for  any  low-value  advance  payment 

effected in cash.  

1.7.  The  draft  law  also  reviews  the  limitations  of  cash  payments  applicable  to  the  sale  of  gold  by 

consumers to professionals. To remedy the lack of clarity as to the applicability of the limitation of 

cash payments to the purchase of gold ingots  by  professionals, the draft law substitutes the  new 

concept of ‘precious substances’, which is broadly defined and refers to gold, platinum, silver and 

palladium,  for  the  current  concept  of  ‘precious  metals’,  which  excludes  investment  gold,  such  as 

ingots and coins. Furthermore, except in the case of an open sale under the supervision of a bailiff, 

if a purchaser is not a consumer they may not pay in cash for old metals, copper cables or goods 

containing precious substances, unless they are present only in small quantities and only because 
of the physical properties they provide. According to the explanatory memorandum4, this prohibition 

4  

Explanatory memorandum, p. 255.  

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is  justified  based  on  the  increased  risk  of  money  laundering  and  the  handling  of  stolen  goods, 

especially by travelling criminal groups. The existing obligation to record such cash payments has 

not  prevented  the  handling  of  such  goods,  and  this  requirement  is  regularly  circumvented  by 

traders  overvaluing  the  quantity  purchased  from  some  consumers,  and  not  recording  the  data  of 

others who sell jewels with dubious origins. The draft law introduces, nevertheless, an exception to 

the prohibition for low cash payments of up to EUR 500, to allow occasional sales by a consumer 

of goods made out  of gold, such as  an  old ring. The  existing obligation  regarding identification  is 

retained in those instances.   

1.8.  The  draft  law  also  contains  provisions  intended  to  clarify  the  powers  and  tools  of  the  NBB  with 

regard  to  the  prevention  of  money  laundering  and  terrorist  financing.  To  this  end,  the  draft  law 

amends  the  Organic  Law  of  the  NBB  to  confer  the  task  on  the  NBB,  as  part  of  its  supervisory 

powers, of ensuring that financial institutions comply with legal and regulatory provisions  including 

European  law  aimed  at  preventing  the  use  of  the  financial  system  for  the  purpose  of  money 

laundering  and  terrorist  financing  and  the  financing  of  the  proliferation  of  weapons  of  mass 

destruction.  The  draft  law  lists  all  of  the  supervisory  powers,  control  measures  and  sanctions 

available  to  the  NBB  to  discharge  this  task.  The  draft  law  furthermore  authorises  the  NBB  to 

exchange  with other competent  authorities of  Union  Member States or third countries  information 

relevant to the discharge of this task under rules ensuring the respect of the confidentiality of such 

information. Finally, the draft law authorises the Treasury to demand information from the Central 

Point of Contact at the NBB for the purpose of the application of the financial penalties set out in 

Union  Council  regulations  on  financial  sanctions  set  out  in  resolutions  adopted  by  the 

United Nations Security Council.  

2. 

General observations 

2.1.  Although  the  draft  law  amends  the  Organic  Law  to  empower  the  NBB  to  ensure  that  financial 

institutions comply with legal requirements aimed at preventing the use of the financial system for 

the  purposes  of  money  laundering  and  terrorist  financing  and  the  financing  of  the  proliferation  of 

weapons of mass destruction, the ECB understands that the NBB, as part of its current supervisory 

powers, already discharges this task and uses the powers, measures and tools set out in the draft 

law. Against this backdrop, the draft law does not confer any genuinely new task on the NBB.  

2.2.  This opinion does not address the issue of the draft law’s effective transposition of Directive (EU) 

2015/849 into Belgian law. The focus of this opinion is on the limitation of cash payments and the 

NBB’s tasks under the draft law. 

3. 

Limitation of cash payments 

3.1.  The Commission’s Recommendation of 22 March 2010 on the scope and effect of legal tender of 
euro  banknotes  and  coins5  (hereinafter  “the  Commission’  Recommendation”)  states  that  the 

5  

Commission  Recommendation  of  22  March  2010  on  the  scope  and  effects  of  legal  tender  of  euro  banknotes  and 
coins (OJ L 83, 30.3.2010, p. 70). 

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acceptance of payments in cash should be the rule, but acknowledges  that cash may be refused 

for reasons related to the ‘good faith principle’, without this constituting a breach of the legal tender 

status of cash. Neither the Commission Recommendation nor other Union law explicitly addresses 

whether,  nor  to  what  extent,  itmay  be  permissible  to  introduce  a  more  general  limitation  to  the 

obligation to accept cash payments. Therefore, Union law must be interpreted in order to ascertain 

the conditions that a limitation on payments in euro banknotes and coins should fulfil, including the 

conditions  that  should  be  fulfilled  to  comply  with  the  legal  tender  status  of  euro  banknotes  and 
coins when general limitations on the obligation to accept cash payments are introduced6.  

3.2.  Without prejudice to the specific considerations in paragraphs 3.5 to 3.8, the draft law must comply 
with Union law. In this context, recital 19 of Council Regulation (EC) No 974/987, which states that 

limitations on payments in banknotes 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,  should  be  taken  into 
account8. The ECB considers that other lawful means for the settlement of monetary debts, which 

ensure similar benefits to those of cash, are generally available in Belgium for all transactions that 

are subject to the limitation of cash under the draft law. 

3.3.  Limitations on payments in cash should, however, be effective and proportionate to the objectives 

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

impact  of  the  proposed  limitations  should  therefore  be  carefully  weighed  against  the  anticipated 

public benefits. When considering whether a limitation is proportionate, the adverse impact of the 

limitation  in  question  should  always  be  considered,  as  well  as  whether  any  alternative  measures 
could be adopted that would fulfil the relevant objective and have less adverse impact9  

3.4.  Furthermore, it should be borne in mind that the ability to pay in cash remains particularly important 

for  certain  groups  in  society  that,  for  various  legitimate  reasons,  prefer  to  use  cash  rather  than 

other payment methods. Cash is generally also appreciated as a payment instrument because it is 

widely  accepted,  fast  and  facilitates  control  over  the  payer’s  spending.  Moreover,  it  is  the  only 

means of payment that allows citizens to instantly settle a transaction in central bank money and at 

face  value,  without  the  legal  possibility  to  impose  a  fee  for  the  use  of  this  means  of  payment, 

Moreover,  cash  payments  facilitate  the  inclusion  of  the  entire  population  in  the  economy  by 

allowing it to settle any kind of financial transaction in this way. 

3.5.  The ECB understands that the Belgian legislator proposes to take advantage of the implementation 

of Directive (EU) 2015/849 to review the limitations on cash payments, which are relaxed in certain 

respects  and  bolstered  in  others.  On  the  one  hand,  the  draft  law  adapts  the  threshold  for  cash 

payments, which is to EUR 3 000 of the amount effectively paid, without being combined with the 

criterion  of  10  %  of  the  price  of  the  goods  or  services.  On  the  other  hand,  the  limitation  on  cash 

6  
7  
8  

9  

CON/2017/18. 
Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro (OJ L 139, 11.5.1998, p. 1).  

See  for  example  Opinions  CON/2013/18,  CON2014/4  and  CON/2014/37.  All  ECB  opinions  are  published  on  the 
ECB’s website at www.ecb.europa.eu.  
See  for  example  paragraph  2.3.  of  Opinion  CON/2014/4,  paragraph  2.3.  of  Opinion  CON/2014/37  and  paragraphs 
2.6 and 2.7 of Opinion CON/2017/8.  

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payments  now  applies  to  all  kind  of  payments,  without  distinction  as  to  the  contractual  or  non-

contractual  nature  of  the  payment,  the  existence  (or  not)  of  any  consideration  or  the  capacity  in 

which natural or legal persons act. Transactions between consumers are, however, excluded from 

the scope of these limitations. Furthermore, the strict prohibition on cash payments which applies 

now  to  the  purchase  of  copper  cables  by  non-consumers  is  extended  to  purchases  by  non-

consumers  of  all  types  of  old  metals,  copper  cables  or  goods  containing  precious  materials. 

The only exceptions are where an open sale takes place under the supervision of a bailiff, where 

the purchaser is not a consumer, and for low cash payments of up to EUR 500.  

3.6.  Although other lawful means for the settlement of monetary debts are available in Belgium and the 

draft law’s objectives of combating money laundering and the handling of stolen goods, especially 

by travelling criminal groups, qualify as public reasons outweighing any impact of the limitations on 

cash  payments  the  ECB  would,  nevertheless,  recommend  a  careful  weighting  of  the  measures 

proposed  in  the  draft  law  that  bolster  the  limitation  on  cash  payments  against  the  public  benefits 

expected to be derived from them, especially as regards the strict prohibition on cash payment for 

goods containing precious metals.  

3.7.  The ECB welcomes that the threshold  for cash payments is now defined without reference to the 

criterion  of  10  %  of  the  price  of  the  goods  or  services.  Not  only  does  this  amendment  clarify  the 

limitations  on  cash  payments  –  which  are  currently  poorly  understood  and  implemented  –  but  it 

also  contributes  to  greater  circulation  of  cash.  As  a  matter  of  fact,  the  envisaged  EUR  3  000 

threshold  –  which  is  quite  low  considering  that  Directive  (EU)  2015/849  applies  customer  due 

diligence  measures  only  to  cash  payments  of  EUR  10  000  or  more  –  would  now  relate  to  the 

amount  effectively  paid,  and  no  longer  to  the  total  purchase  price  of  the  goods  or  services. 

The ECB also welcomes that such limitations do not apply to transactions between consumers, as 

for  such  transactions  there  might  be  difficulties  involved  in  replacing  cash  due,  inter  alia,  to  the 

insolvency risk of the counterparty, the lack of possibility of immediate settlement, and the absence 

of an infrastructure for cashless means of payment which ensure similar benefits to those of cash 

for private persons. 

3.8.  The  ECB  recommends,  however,  raising  the  threshold  of  EUR  500  for  purchases  by  non-

consumers of all types of old metals, copper cables or goods containing precious materials, as this 

threshold  is  disproportionately  low,  despite  the  intention  of  combatting  money  laundering  and  the 

handling  of  stolen  goods,  especially  by  travelling  criminal  groups.  In  the  case  of  vendors  selling 

jewels with dubious origins traders are, in any case, not supposed to enter into such transactions, 

irrespective  of  their  amount,  as  this  would  give  rise  to  a  breach  of  criminal  law  on  account  of 

concealment.  

4. 

The  NBB’s  tasks,  powers  and  tools  available  for  the  prevention  of  money  laundering  and 

terrorist financing 

4.1.  The ECB welcomes that the draft law and the Organic Law  separate the NBB’s powers and tools 

for the prevention of money laundering and terrorist financing from those available to it as part of its 

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supervisory competences. This facilitates the exercise of supervisory powers within the framework 

of the Single Supervisory Mechanism.  

4.2.  The ECB notes that the Central Point of Contact at the NBB referred to in the draft law, from which 

the  Treasury  may  request  information  for  the  purpose  of  the  application  of  the  financial  penalties 

set  out  in  Council  regulations  on  financial  sanctions  set  out  in  resolutions  adopted  by  the 

United Nations  Security  Council,  corresponds  to  the  central  register  of  bank  accounts,  regarding 

which the ECB issued  Opinion CON/2016/35. The ECB understands that the Belgian  legislator is 

currently  drafting  a  law  setting  out  the  principles  according  to  which  the  development  and 

functioning costs of this register will be fully covered ex ante by its users (including the Minister for 

Finance, when the request emanates from the Treasury) and that a  royal decree will further detail 

the accounting mechanisms to this end. The prohibition of monetary financing is therefore complied 

with and this issue does not call for further comments from the ECB.  

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

Done at Frankfurt am Main, 30 May 2017. 

[signed] 

The President of the ECB 

Mario DRAGHI  

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