Introducing the Use of Cash (Restriction) Regulations

FAQs

These questions and answers do not constitute the entire set of obligations, penalties and powers relating to the Use of Cash (Restriction) Regulations but are intended to explain the more commonly asked questions by buyers, traders and other interested parties. These interpretations are not binding on the FIAU and do not constitute legal advice.

The Use of Cash (Restrictions) Regulations are a set of legal provisions that make it illegal to make or receive cash payments of €10,000 or more for the following goods:

• Motor-vehicles
• Sea craft
• Works of art
• Antiques
• Immovable property
• Jewellery, precious metals, precious stones, and pearls
• Cash payments below €10,000 are not restricted.

The Regulations do not restrict the amount of cash that can be used on goods other than those mentioned above.

The Regulations do not restrict payments made through means other than cash.

The term ‘cash’ refers to physical notes and coins. The Use of Cash (Restriction) Regulations prohibit the use of cash, i.e., using physical banknotes and coins to pay a sum of €10,000 or more. The term ‘cash’ does not include other forms of payment such as cheques, card payments or bank transfers. Hence, payment by means other than physical banknotes and coins is not limited or restricted by the Regulations.

No. The Use of Cash (Restriction) Regulations do not have a retroactive application. This means that the Regulations apply only to those transactions (whether linked or otherwise), made in cash from the day the law came into force, i.e. from 9 March 2021 onwards.

No. These regulations apply only to the buyer and the seller involved in a transaction concerning the purchase or sale of any of the items listed in the Regulations (i.e., immovable property, antiques, works of art, sea craft, motor vehicles, jewellery, precious stones, precious metals and pearls), when payment of €10,000 or more is carried out in cash. However, a bank may have other obligations under different laws which may require it to establish how funds deposited were generated and/or the reason behind certain transactions. This would be the case with the on-going monitoring obligations under the Prevention of Money Laundering and Funding of Terrorism Regulations.

No. The restrictions apply only on the goods that are listed in the Regulations. This means that other goods such as furniture can be paid for in cash without any restriction on the amount as long as the furniture in question does not fall to be considered as antiques.

For the purpose of the Regulations, the term ‘jewellery’ refers to personal ornaments made in whole or in part, or covered with gold, silver, platinum or other precious metals and/or, set with diamonds, precious stones or pearls, and wrist watches.

For the purpose of the Regulations the term ‘precious metals’ refers to gold, platinum, palladium and silver in the pure state and their alloys.

For the purpose of the Regulations the term ‘precious stones’ refers to substances with gem quality and market-recognised beauty, rarity, and value. They include diamonds, sapphires, rubies, and emeralds.

A sea-craft is any ship, boat, pleasure yacht and any other form of sea-craft which is used in navigation.

Any self-propelled road vehicle which is normally used for carrying persons or goods on the road. This includes cars, motorcycles, buses, trucks, and construction vehicles. The vehicle can be in both new and second-hand condition.

The term ‘antiques’ refers to works of art or objects of geological, paleontological, archaeological, or antiquarian importance, which are at least one hundred years old.

No. The restriction also applies when payment is made in cash in any other currency. The limit on the amount of that currency that can be paid in cash is the equivalent of €9,999.99.

No. The Regulations apply to any person transacting in cash (i.e. coins and banknotes), whether they are buying or selling.

Yes. These Regulations apply also in cases of private, non-commercial transactions. E.g.: A person selling their used personal vehicle through a social media website would have to abide by the Regulations and would, together with the buyer, be committing a criminal offence if the seller were to accept cash as payment in excess of €9,999.99 from the buyer.

Linked transactions consist of two or more transactions which have the following three elements:

They are performed by the same individual(s)
They have a similar or linked purpose
They are carried out within a six-month period

Example of a linked transaction:

Two cash payments of €7,000 each, one carried out in June and the other in August, to pay for the same car, would constitute a linked transaction. This is because they are performed by the same individual, have a similar or linked purpose (the same car), and are carried out within a six month period.

No. Even multiple items purchased in a single transaction are considered as linked.

Examples:

a) Trader ‘A’ is an antique dealer and acquires a lot of Melitensia items. The seller requests payment in cash. Individually the items are priced well below the EUR 9,999.99 but collectively they exceed the said amount. If Trader ‘A’ were to accede to the seller’s request, the two of them would be breaching the Regulations.

b) Trader ‘B’ is a car dealer. In January an individual acquires a car from Trader ‘B’ with the intention to use the same for a new taxi service. In March of the same year, the same individual acquires a further vehicle from Trader ‘B’ for the same purpose. Individually the vehicles did not exceed EUR 9,999.99 but taken together they do. While it is possible for payment for the first vehicle to have taken place in cash, this is not possible with respect to the second one as it would result in a breach of the Regulations. The two transactions meet the conditions to be considered as linked.

If an individual purchases any of the goods listed under regulation 3(1) (vehicles/seacraft/works of art/antiques/immovable property/jewellery/pearls/precious metals and stones), and within a 6-month period purchases once again the same good from the same seller, for the same purpose, that purchase is considered as linked. Furthermore, if both cash payments combined amount to €10,000 or more, then such payments would be in breach of the Use of Cash (Restriction) Regulations.

Introducing the Use of Cash (Restriction) Regulations

FAQs

What are the Use of Cash (Restriction) Regulations?

What does ‘cash’ mean? Does this include cheques or card payments?

Do the Use of Cash (Restriction) Regulations apply to purchases made before the law came into force?

Do these regulations apply when depositing or withdrawing cash from a bank?

Do the Regulations apply to goods such as furniture?

What type of jewellery do the Regulations cover?

What are precious metals?

What are precious stones?

What is meant by sea-craft?

What is meant by motor-vehicles?

What is understood by antiques?

Does the cash restriction apply only when paying cash using the Euro currency?

Do these Regulations apply only to buyers?

Do the Regulations apply to purchases between private individuals?

What are linked transactions?

Does the cash restriction apply only to individual items?