New legislation on controls of cash entering or leaving EU-Cash amounting to 10,000 Euros or more must be declared |17 May 2007

Control will be based on a requirement for any person entering or leaving the EU to declare the cash that they are carrying if it amounts to 10,000 Euros or more, and for the declared data to be recorded and processed by the appropriate authority of the Member State where the declaration is made.

In the UK, this will be Her Majesty's Revenue and Customs (HMRC).

According to a communique from the British High Commission in Victoria, people travelling directly to or from a country outside the EU and carrying 10,000 euros or more (or the equivalent amount in another currency) will, as of June 15, 2007, be required to declare the cash to HM Revenue and Customs (HMRC) at the place of their departure from, or arrival in, the United Kingdom.( “Cash” not only means currency notes and coins but also bankers’ drafts and cheques of any kind, including travellers’ cheques.)

“This measure will apply in all EU countries having been introduced under European Parliament and Council Regulation No1889/2005 to help combat money laundering,” says the communiqué.

Forms on which to make the declaration will be available at ports and airports. Travellers will be liable to financial penalties if they fail to comply with the obligation to declare or provide incomplete or incorrect information.

There will still be no requirement to declare cash for people travelling to or from another EU country.

According to the communiqué HMRC officers will not detain property declared cash if they have no reason to doubt its legitimacy.

“However, as with cash in amounts of £1000 or more found at any place within the UK, under the Proceeds of Crime Act 2002 (POCA), it may be seized if an officer has reasonable grounds to suspect it is either the proceeds of, or is intended for use in, unlawful conduct,” notes the communiqué.

“Without a court order, seized cash cannot be detained for more than 48 hours (not including Public Holidays and weekends),” the communiqué adds.

A court may order seized cash to be further detained whilst its origin and intended use are investigated; and forfeited permanently if satisfied from the investigation that it is associated with criminal activity.

A person from whom cash has been seized will be given information on how to appeal against its subsequent detention and/or forfeiture.

The countries of the EU are Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, (including the Canary Islands), Sweden, and the United Kingdom (not including the Isle of Man and the Channel Islands).