Brussels, 14/06/2007 (Agence Europe) - On Friday 15 June, Regulation (EC) No1889/2005 on the control of cash movements entering or leaving the Community is to take effect (see EUROPE 8244, 8829 and 8966). “As of 15 June 2007, travellers entering or leaving the EU are required to make a declaration to customs authorities if they are carrying €10,000 or more in cash”, the spokeswoman for Laszlo Kovacs, commissioner for customs union, said on Thursday 14 June. This limit is valid whatever the currency. Several formulas may be used to make the declarations.
All member states are willing to apply the regulation, Mr Kovacs' spokeswoman was pleased to note. She went on to say that this new situation should prevent criminals from exploiting the loopholes resulting from the fact that the different member states apply the rules differently. Before, only six member states (France, Germany, Greece, Italy, Portugal and Spain) specifically controlled cash movements at their borders. Some demanded systematic written declarations, others a declaration upon request by customs officers. The thresholds fixed for declarations varied from €7,600 to over €15,000. When the regulation was adopted by the Council, only Italy voted against.
What will happen if a person is arrested at the EU border with a sum exceeding €10,000? Customs administrations are entitled to seize the money and then to carry out checks on that person. If there is no particular problem, the money will be given back. If there is any suspicion of drug trafficking or money laundering, for example, the funds intercepted may remain confiscated.
In order to inform travellers of the new rules, the Commission has produced a manual that will be available in “all official EU languages, plus Arabic, Japanese, Korean, Turkish and Chinese”, Mr Kovacs's spokesperson said. Audiovisual messages will also be diffused in airports and other EU border crossing points.
The regulation only covers cash movements, with electronic transfers being subject to Directive 2005/60/EC or the “third money laundering directive”. It is based on a recommendation from the OECD's Financial Action Task Force on Money Laundering (FATF), which recommends adoption of measures to control cross-border monetary movements. (mb)