Opinion of the European Central Bank of 30 December 2019 on limitations to cash payments (CON/2019/46)
Date: 2019-12-30
Institutions: European Central Bank
Subjects: Netherlands, commercial transaction, fight against crime, money, money laundering, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 30 December 2019 

on limitations to cash payments 

(CON/2019/46) 

Introduction and legal basis 

On 3 December 2019 the European Central Bank (ECB) received a request from the Minister for Finance 

of  the  Netherlands  for  an  opinion  on  a  draft  law  on  an  anti-money  laundering  action  plan  containing 

limitations to 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 indent of Article 2(1) of Council Decision 98/415/EC1, 

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  The draft law intends to reinforce the measures taken to prevent money laundering by limiting the 

use of large amounts of cash. 

1.2  The draft law prohibits natural or legal persons trading in goods, in the course of their business or 

professional activities, from receiving or making a payment in cash in an amount equal to or greater 

than  EUR  3  000,  regardless  of  whether  the  transaction  is  carried  out  in  a  single  operation  or  in 

several operations which appear to be linked. The ECB understands that the draft law is addressed 

to  professional  parties  and  will  only  affect  consumers  if  they  buy  or  sell  goods  from  such  a 

professional party. Transactions between consumers are not covered by the draft law. 

2. 

Observations  

2.1  Commission  Recommendation  2010/191/EU2  states  that  the  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 Union 

law nor Recommendation 2010/191/EU explicitly addresses whether, or to what extent, it may be 

permissible to introduce a more general limitation to the obligation to accept euro 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 

1  

2  

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). 
Commission  Recommendation  2010/191/EU  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).   

 
 
 
 
 
                                                 
ECB-PUBLIC 

to comply with the legal tender status of euro banknotes and coins when general limitations to the 
obligation to accept cash payments are introduced3. 

2.2  Recital 19 of Council Regulation (EC) No 974/984 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  available5.  Additionally,  these  limitations  should  also  be  effective  and 

proportionate  to  the  objectives  pursued  and  not  go  beyond  what  is  necessary  to  achieve  such 

objectives in order to comply with the legal tender status of euro banknotes. Any limitation should 

not otherwise affect in principle the legal tender status of euro banknotes. 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 impact6. 

2.3  The  ECB  acknowledges  that  the  draft  law’s  objective  of  reinforcing  measures  taken  to  prevent 

money  laundering  may,  in  general,  constitute  a  ‘public  reason’  justifying  the  establishment  of 
limitations on cash payments7.  

2.4  Furthermore, 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 payment8. 

2.5  Other lawful means for the settlement of monetary debts with similar benefits as cash are generally 

available  in  the  Netherlands  for  the  purchase  of  goods,  also  above  the  foreseen  threshold  of 

EUR 3 000.  Taking  this  into  consideration,  in  addition  to  the  above  general  observations,  the 

limitations on cash payments set out in the draft provisions could be deemed proportionate to the 

objectives  pursued.  They  could  also  be  deemed  to  not  go  beyond  what  is  necessary  to  achieve 

such objectives. However, the ECB cannot elaborate on the effectiveness of the draft law since no 

substantiation thereof has been provided together with the draft law. 

2.6  The ECB takes particular note of the approach adopted in the draft law, whereby the prohibition on 

the  receipt  or  payment  of  cash  in  an  amount  equal  to  or  greater  than  EUR  3  000  is  limited  to 

transactions whereby at least one of the parties is trading in goods in the course of their business 

or  professional  activities.  The  ECB  welcomes  the  approach  taken  by  the  Netherlands  authorities 

not to restrict cash payments between private users or consumers. 

3  

4  

5  
6  

7  
8  

See  paragraph  2.1  of  Opinion  CON/2017/18,  paragraph  3.1  of  Opinion CON/2017/20,  paragraph  2.3  of 
Opinion CON/2017/27, paragraph 2.2 of Opinion CON/2017/40 and paragraph 2.2 of Opinion CON/2019/4. All ECB 
opinions are available on the ECB’s website at www.ecb.europa.eu.    
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, CON/2014/4 and CON/2014/37. 
See, for example,  paragraph 3.3 of Opinion CON/2017/20, paragraph 2.7 of Opinion CON/2017/27, paragraph 2.6 
of Opinion CON/2017/40 and paragraph 2.5 of Opinion CON/2019/4. 
See, for example, paragraph 2.5 of Opinion CON/2017/40. 
See  paragraph  2.6  of  Opinion  CON/2017/18,  paragraph  3.4  of  Opinion  CON/2017/20,  paragraph  2.8  of 
Opinion CON/2017/27, paragraph 2.7 of Opinion CON/2017/40 and paragraph 2.6 of Opinion CON/2019/4. 

2 

                                                 
ECB-PUBLIC 

2.7  The ECB understands that electronic payment instruments are increasingly used as the method of 

payment in the Netherlands, while the use of cash is declining. Nevertheless, as indicated above, 

cash is a well-established means of payment providing for immediate settlement of debts and direct 

control over the payer’s spending,  and  also facilitates the inclusion of the  entire  population in  the 
economy by allowing it to settle any kind of financial transaction in this way9. The ECB notes that 

cash  could  play  an  important  role  in  the  event  of  a  disturbance  in  the  payment  systems,  even 

though cash machines and other service points may  also be affected as these are dependent on 
interaction  with  the  account  holding  institutions.  The  ECB  considers  it  important  that  all  Member 

States take appropriate measures to ensure that credit  institutions and branches operating  within 

their territories provide adequate access to cash services, in order to facilitate the continued use of 
cash10. 

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

Done at Frankfurt am Main, 30 December 2019. 

[signed] 

The President of the ECB 

Christine LAGARDE 

9  

10  

See,  Opinion  CON/2017/8,  Opinion  CON/2017/40, 
Opinion CON/2019/41. 
See paragraphs 2.1 and 2.3 of Opinion CON/2019/41. 

  Opinion CON/2019/4,  and  paragraph  2.1  of 

3