Cash Transaction Limitations are Unwarranted and Socially Harmful

What is it about?

In March 2017, the EU Commission announced a public consultation with respect to cash payment limitations (CPL) following the adoption of the action plan of the 2nd February 2016 “against the financing of terrorism”. This action plan suggests that because “payments in cash are widely used in the financing of terrorist activities” we should explore “the relevance of potential upper limits to cash payments”. Arguments for a “cashless” or “less cash” society are also made for convenience and facilitation of payments, shorter remittance timelines and better control for monetary and tax policies. This paper critically examines the articulation and presentation of the CPL case, it then turns to a assessment of serious crime control issues and CPL, ending with a review of legitimate interests that may be harmed by CPL

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Why is it important?

The paper concludes that CPL would not pass a cost-benefit analysis. The stated goals would not be well served, the negative effects and risks are legion, and popular support by the population is lacking. CPL measures thus are out of proportion and ill-advised.