04:04 GMT +3 hours24 July 2016
Live
Euro banknotes

Cash 4 Jihad: Germany Considering Banning Cash Transactions Over €5,000

© Sputnik/ Ruslan Krivobok
Europe
Get short URL
374504

The German ministry of finance wants to impose a limit of €5,000 on cash payments in order to better track the financing of international terrorists, FAZ reported.

The German government is considering imposing a limit of 5,000 euros ($5,480) on cash payments in order to better track the financing of international terrorism, Frankfurter Allgemeine Zeitung (FAZ) reported on Tuesday.

"The threat of international terrorism, especially in the form of the Islamic State (Daesh), is behind the move, but restrictions on cash have been discussed for some time for other reasons," FAZ reported. 

A source in the German Federal Ministry of Finance said that the use of pre-paid cards and large amounts of cash by the terrorists who carried out the November 13 terror attacks in Paris is one of the reasons for the proposal.

"The world after the Paris terror attacks is no longer the same as before," the ministry source told FAZ, and likened the move to the banning of liquids on airplanes following the 9/11 terrorist attacks in 2001.

'Federal government's plan: cash payments in future only up to 5,000 euros,' FAZ reported.

​Germany's Social Democratic Party (SDP), which forms Germany's ruling coalition with Angela Merkel's CDU party and the Bavarian CSU party, has already called for the imposition of a 5,000 euro limit on cash transactions in the belief that it would better prevent money laundering and tax evasion.

"In our opinion there is no plausible or legal reason to conduct a cash transaction above this limit," the SDP stated in a parliamentary paper last month. In addition, the party wants to ban the 500 euro banknote to stop it being used by organized crime.

€500
© Flickr/ L. Javier Modino Martinez
"Germany is a popular destination for organized crime and the Mafia," the SDP wrote.

"In the federal republic alone almost 60 billion euros ($66 billion) are laundered every year."

Germany is one of a minority of EU member states that currently do not have a limit on cash transactions. 

The strictest caps are in Italy, where cash payments over 1,000 euros were banned in 2011 to fight tax evasion, and in France, which in 2015 limited fiscal residents to spending 1,000 euros and non-residents to 10,000 euros in cash.

Related:
Ruble Strengthens Against Dollar, Euro on Growth of Oil Prices
‘Currency War Alive and Well’ as Yen, Euro Advance Against Dollar
Euro Heading to Replace Dollar as World’s Most Liquid Currency
Tags:
euro, Germany
Community standardsDiscussion
Comment via FacebookComment via Sputnik
  • Сomment

All comments

  • Linda
    What a f@cking joke. Why dont you first go after the Elephant in the room. Those who have been financiing and support Daesh to be their Proxy army to take out Assad.

    Those countries are US, Turkey, the Saudis Israel and Quatar.
    Sanction those countries and kick this crime syndicat together with NATO out of europé
  • ariavd
    Norway want to ban cash all together, .And only use card. Then your savings are in a bank with negativ interest. You have to use ur money fast to limit ur loss.
  • Voratapoles
    Ooohh goody. So now the USA, Turkey, UK, Britain, Israel & France will have no way of getting the payroll to their dedicated employees in Daesh. Besides, we all know that only weirdos would ever pay for cars, houses, boats, debts, cameras, garden machines, jewelry and many other things in cash. If you're not in love with the system - no matter what new jive the system concocts, you must be one of those weirdos.
Show new comments (0)
Top stories