EU law to clamp down on cross-border cash movement

EU tax and customs chief Fritz Bolkestein said in December that the EU would look to implement a law requiring travellers to declare cash exceeding E10,000 if carried across external borders.

The new law will require travellers coming in and out of the EU to declare large amounts of cash to customs officials. Border officials will be able to seize any undeclared money and start criminal proceeding against the traveller. According to the UE Commission, the E10,000 limit will be enough to prevent any undue problems for normal travellers and small businesspeople.

The proposal is designed to prevent laundered money from reaching criminals and terrorists while at the same time not unduly interfering with the legitimate traveller, said Frits Bolkestein.

A joint operation by EU customs authorities monitoring cross-border cash movements over 10,000 during a six month period in 1999 to 2000 revealed total cash movements of 1.35 billion.

The US customs authorities already have such a scheme.