YEREVAN, Armenia—The Council of the European Union has adopted a regulation aimed at improving controls on cash entering or leaving the EU. The move follows an agreement reached with the European Parliament in June.
“Terrorist financing, money laundering, tax evasion and other criminal activities need to be tracked and eliminated. The new regulation provides us with the necessary tools to be more efficient in tackling such threats,” said Hartwig Löger, Austrian Federal Minister for Finance, according to a report by Armen Press.
The regulation will improve the existing system of controls on cash entering or leaving the EU. It means that the latest developments in international standards on combating money laundering and terrorism financing developed by the Financial Action Task Force (FATF) will be reflected in EU legislation, Armen Press reported.
“In practical terms, the new regulation extends the definition of cash to cover not only banknotes but also other instruments or highly liquid commodities such as checks, traveler's checks, prepaid cards and gold. The regulation is also extended to cover cash that is sent by post, freight or courier shipment,” Armen Press said.
What Legislation Also Does
The new legislation extends the obligation of any citizen entering or leaving the EU and carrying cash to a value of €10,000 or more to declare it to the customs authorities. The declaration will be required irrespective of whether travelers are carrying the cash in person, in their luggage or means of transport, Armen Press said.
If the cash is sent by other means (“unaccompanied cash”), the relevant authorities will have the power to ask the sender or the recipient to make a disclosure declaration. The authorities will be able to carry out controls on any consignments, packages or means of transport which may contain unaccompanied cash, according to the report.
Member states will exchange information where there are indications that cash is related to criminal activity which could adversely affect the financial interests of the EU. This information will also be transmitted to the European Commission.
The Council and the European Parliament now need to sign the adopted regulation.