New limit to large cash payments and prohibition of anonymous instruments

The Anti-Money Laundering Regulation (AMLR) introduces several important measures aimed at reducing risks linked to anonymity and large cash transactions within the European Union. These changes affect both market practices and compliance obligations for certain categories of professionals.

Introduction of an EU-wide limit to large cash payments

The AMLR introduces a new limit to large cash payments in exchange for goods or services.

As a result, persons trading in goods or providing services may accept or make payments in cash only up to an amount of EUR 10,000 (or equivalent). This applies whether the transaction is carried out:

• in a single operation; or
• in several operations which appear to be linked.

Two exceptions are предусмотрed:

• where the payment occurs between natural persons who are not acting in a professional capacity; or
• where the payment or deposit is made at the premises of a credit institution, electronic money issuer or payment service provider.

The objective of introducing this Union-wide limit is clear: to adequately mitigate risks deriving from the misuse of large cash sums.

What will change in practice?

In practical terms, this framework leads to a notable shift:

• persons trading in goods no longer need to be subject to AML-CFT obligations, except for:
  • persons trading in precious metals;
  • precious stones;
  • other high value goods; and
  • cultural goods.

Anonymous instruments: a reinforced prohibition

In order to further reduce risks linked to anonymity, the AMLR expressly establishes a prohibition on anonymous instruments.

Consequently, the following entities are prohibited from maintaining anonymous accounts or instruments:

• credit institutions;
• financial institutions;
• crypto-asset service providers.

This prohibition applies specifically to:

• bank and payment accounts;
• passbooks;
• safe-deposit boxes;
• crypto-asset accounts; and
• any account otherwise allowing for:
  • the anonymisation of the customer account holder; or
  • the anonymisation or increased obfuscation of transactions, including through anonymity-enhancing coins.

Bearer shares: prohibition and transition requirements

The AMLR also introduces strict rules regarding bearer shares, with the objective of increasing transparency in corporate ownership.

Prohibition and conversion requirement

• Companies are prohibited from issuing bearer shares.
• All existing bearer shares must be converted into registered shares.

An exemption is предусмотрed for companies with securities listed on a regulated market, subject to certain conditions.

Suspension of rights

• Any voting rights or rights attached to existing bearer shares that are not converted, immobilised or deposited by 10 July 2029 will be automatically suspended.
• This suspension remains in effect until the shares are converted, immobilised or deposited.

Cancellation of shares

• Any bearer shares not converted, immobilised or deposited by 10 July 2030 will be cancelled.

Conclusion

Through these measures, the AMLR significantly strengthens the EU’s framework to combat money laundering and terrorist financing by:

• limiting the use of large cash payments;
• eliminating anonymous financial instruments; and
• increasing transparency in corporate ownership structures.

These developments require affected stakeholders to review their practices and ensure timely compliance, particularly in relation to payment methods, account structures, and shareholding arrangements.

Any questions?

For further information or to discuss the impact of these changes, please contact our key representatives.