Brussels, 28/06/2002 (Agence Europe) - The European Commission has unveiled a regulation to introduce an EU-wide approach to controlling cash movements in and out of the EU to combat money laundering. Anyone carrying more than EUR 15,000 in cash would have to make a written declaration to customs. Customs authorities would be authorised to check travellers and their luggage and confiscate money found for up to three working days, but this time may be extended if further investigation was required. Member States are called upon to apply penalties under their national legislation proportionate to the crime and not exceeding a quarter of the sums transported.
Commissioner Frits Bolkestein said the regulation would "not unduly interfere with the legitimate traveller", since the EU had to "encourage the free movement of capital within the EU and between the EU and third countries but … prevent laundered money from reaching … terrorists". A joint operation by EU customs authorities monitoring cross-border cash movements in excess of EUR 10,000 from September 1999 to February 2000 revealed total cash movements in that period of EUR 1.35 billion.
Only six Member States currently carry out cash controls - France, Germany, Greece, Italy, Portugal and Spain. The types of control differ considerably, with some countries demanding written declarations and others declarations if required by a customs official. The thresholds laid down for declarations vary from EUR 7600 to just over EUR 15,000, points out the Commission.
The Commission is proposing to check both cross-border cash movements into the EU, noting that "bringing cash into the EU to convert into another currency is a classic money laundering scenario", and out of the EU, which can be used to fund drug imports, counterfeiting and contraband of highly taxed products like alcohol and cigarettes. The Commission says the fines would not be used by tax authorities.
The regulation supplements the EU money laundering Directive of November 2001 that imposes an obligation on credit and financial institutions (including banks, accountants and lawyers) to make a declaration when they suspect laundering or when a single transaction or a series of transactions exceeds EUR 15,000.