EU: Cash controls - combating terrorist financing

Cash controls - combating terrorist financing

The Council adopted a common position with a view to the adoption of a Regulation of the European Parliament and of the Council on controls of cash entering or leaving the Community (14843/04)[1]. The common position will be sent to the Parliament for a second reading.

The Regulation is aimed at improving the effectiveness of Directive 91/308/EEC on the prevention of the use of the financial system for the purpose of money laundering, in order to better combat terrorist financing, by providing a common system for cash controls at the EU’s external frontiers.

It is also aimed at implementing the recommendations of the Financial Action Task Force on Money Laundering set up at the initiative of the G7.

The Council decided to set at 10 000 euros the threshold above which natural persons will be required to declare cash when crossing the EU's external frontiers. It also decided to retain a provision requiring that information provided in written, oral and electronic declarations be recorded and processed by national authorities.

[1] The common position was adopted by qualified majority, with the Italian delegation voting against. The decision was taken by the Economic and Financial Affairs Council on 17 February 2005.

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