In April 2024, the European Union approved restrictive provisions cash payments. The introduction of fresh regulations aims at expanding transparency of transactions and reducing phenomena specified as money laundering or taxation avoidance. What does this mean for Poles and erstwhile will the regulations come into force?
Existing limits in Poland
Currently, Poland is in force cash payment limit of PLN 15 thousand, but it only concerns business transactions. Private persons may pay without limitation in cash, regardless of the amount.
In 2023, the government considered introducing a cash payment limit besides for individuals. However, this thought was criticized and not implemented. However, shortly changes may be inevitable due to the fact that The European Union imposes uniform rules concerning cash payments throughout the community.
New limits in the European Union
According to approved regulations from 2027, the European Union will apply an overall cash payment limit of EUR 10 000 (about PLN 42 thousand). In practice, this means that any transaction that exceeds this amount will should be carried out in the form of a bank transfer.
What's important, Member States will be able to introduce stricter rulesif they consider it necessary. For example, in France, the cash payment limit is already EUR 1 000 for taxation residents and in Greece only EUR 500.
Additional restrictions — identity verification
Another novelty introduced by the European Union is the work verification of client identity during cash transactions over 3 1000 euro (about PLN 12.8 thousand).
In practice, this means that buying more costly electronic equipment, jewelry or a car for cash will require the presentation of an identity card. The seller will be required to registry client datato aid monitor the flow of money and destruct illegal activities.
Impact of fresh rules on Poland
The introduction of fresh regulations will change the habits of many Poles. Currently, many people like cash as a form of payment, especially erstwhile buying with higher value. Limiting this anticipation may affect:
- increased usage of non-cash payments, specified as payment cards or mobile applications,
- increasing the function of banks in handling regular transactions,
- less anonymity of transactions, which may origin controversy among those who value privacy.
Why does the Union introduce these rules?
One of the main reasons is the fight against money laundering and the financing of criminal activities. Cash transactions are hard to track, making them an attractive tool for people operating outside the law.
According to Europol's 2022 report, around EUR 113 billion are laundered annually in Europe. The limitation of cash transactions is intended to aid reduce this amount.
When will change take effect?
The fresh rules will become applicable in 2027. associate States so have respective years to adapt their legal systems to the fresh requirements.
What is worth knowing now?
- The current cash payment limit in Poland is PLN 15,000 and concerns entrepreneurs.
- European Union introduces a general limit EUR 10 000 cash transactions.
- Additional limit EUR 3 000 undertakes to verify the identity of the client.
Getting ready for these changes will now avoid problems in the future, especially for those planning to buy or invest more.
More here:
The European Union introduces cash payment limits. What changes await Poles?
