New EU Rules For Cross-Border Cash, Gold Bullion Movements

– War on cash continues and expands to affect non-criminals including gold owners

– New definitions of “cash” to be drawn up by EU to include gold and precious metals

– Claim cash and gold bullion “often used for criminal activities such as money laundering, or terrorist financing”

– Legislation will allow authorities to seize assets from those ‘without a criminal conviction’

– New rules usurp those currently in existence since 2005

The ironically named European Parliament’s Civil Liberties and Economic Affairs committees have backed plans by the European Union to introduce tougher checks and controls on cash entering or leaving the region.

Currently individuals are required to declare cross-border cash sums of €10,000 or more, under the First Cash Control Regulation (CCR) from 2005. A new decision will repeal the CCR and allow authorities to seize cash below the €10,000 threshold should criminal activity be suspected.

According to the European Parliament news website, MEPs have agreed to:

      – widen the definition of ”cash” to include gold, precious stones and metals, as well as anonymous prepaid electronic cash cards,

        – enable the authorities to impound cash below the €10,000 threshold temporarily, if criminal activity is suspected, and

      – make it mandatory to disclose “unaccompanied” cash sent by cargo.

The justification for these changes? They say the current legislation is ‘riddled’ with loopholes. These loopholes apparently make it very easy for money to be laundered across borders, especially as criminals regularly move amounts below the €10,000 limit.

“Large sums of cash, be it banknotes or gold bullion are often used for criminal activities such as money laundering, or terrorist financing. With this legislation, we give our authorities the tools they need to improve their fight against those crimes,” Mady Delvaux, MEP.

This decision to tighten controls is not a surprise. On December 21st last year the European Commission announced plans to increase efforts to “tighten cash controls, ease cross border police probes, and speed up asset freezes and confiscation orders”. This is all part of a larger “Security Union” package launched in April 2015.

No conviction needed

Last December Justice commissioner Vera Jourova told reporters that steps were being taken in order to make life more difficult for criminals and terrorists looking to finance activities.

The problem is that whether you’re a criminal or not then you are subject to these new changes. This is particularly worrying when one considers that the ‘loopholes’ being closed currently prevent the authorities from seizing and confiscating if  the “criminal is not convicted”. Now law enforcement offices in various states can take one look at you, decide they don’t like you or suspect you and find cause to seize your assets.

Sadly they don’t even have to take a physical look at you in order to seize your assets, even ‘unaccompanied cash’ and precious metals is up for grabs if undisclosed.

Careful with those birthday card gifts and wedding rings

At the moment it is not clear if ‘unaccompanied cash’ includes gold and silver bullion coins and bars but it likely is under the new definition. Given the new legislation comes in two parts, first the inclusion of gold etc in the definition of cash and secondly the seizure of unaccompanied assets, then it would be sensible to assume that gold and silver are under scrutiny.

The definition also includes ‘anonymous prepaid electronic cards’. One has to ask how far this is going to go. I often receive ‘gift vouchers’ in the form of electronic cards, from relatives to be spent in a store of their choosing. Are these now at risk of confiscation?

Furthermore, is the definition just about gold and silver bullion and coins, or also jewellery? Goodness knows how many women cross borders each day with their engagement and wedding rings comfortably sitting above the €10,000 mark.

Typical scare-mongering combined with opacity from the EU