EU to Ban Cash Payments Over 10,000 Euros Starting July 2027

The European Union is introducing a new framework to combat money laundering and terrorism financing, which includes a significant restriction on cash payments. As of July 10, 2027, EU authorities and member states must implement regulations that cap cash transactions at 10,000 euros for certain commercial activities.

This new limit is stipulated in Regulation (EU) 2024/1624 of the European Parliament and of the Council. Article 80 of the regulation states that businesses will not be permitted to accept or make cash payments exceeding 10,000 euros, or its equivalent in other currencies. This rule applies whether the payment is made in a single transaction or through multiple operations deemed to be linked. While this establishes a common EU-wide ceiling, member states retain the option to enforce lower national limits.

The period leading up to July 10, 2026, is crucial for preparation and harmonization. During this time, the European Anti-Money Laundering Authority (AMLA), the European Commission, and national competent authorities will focus on developing the necessary standards and guidelines for the uniform application of the regulation. This includes creating guides on risk assessment, internal procedures for obligated entities, and factors to consider when evaluating business relationships and transactions.

Further technical standards related to customer due diligence obligations are also being developed, as outlined in Article 28 of the regulation. These preparatory measures are designed to ensure that both authorities and obligated entities have clear rules in place before the new system becomes fully operational. The regulation aims to create a more robust and harmonized approach to financial crime prevention across the EU.