Cash payment limit reduced from 20,000 DKK to 15,000 – Here’s everything you need to know
From 1 March 2024, a major change to the Anti-Money Laundering Act will come into effect, affecting businesses across Denmark. This change will affect how businesses handle cash payments and have significant implications for compliance and financial operations. Let’s dive into the details and explore what this means for your business.
Important changes
The change involves a reduction in the limit for cash payments from DKK 20,000 to DKK 15,000. This means that companies will be prohibited from receiving cash payments of DKK 15,000 or more. Failure to comply with this regulation may result in fines.
Reason for the change
The change is being introduced in response to the phasing out of the 1,000 kroner banknote by May 31, 2025. With the phasing out of this banknote, businesses that handle cash transactions will be at higher risk of being used for money laundering activities during the phasing out period.
Who is affected?
The cash payment ban applies to all companies, except those covered by Section 1, Subsection 1 of the Money Laundering Act . This includes entities such as financial institutions, legal professionals, accountants, real estate agents and tax advisors. Private individuals are not subject to the cash payment ban.
Fines
Companies that violate the cash payment ban may face fines, typically equal to 25% of the amount received exceeding DKK 15,000, with a minimum fine of DKK 10,000.
What constitutes a cash payment?
In the context of the law, cash payments refer to transactions involving physical currency. This excludes payments made by debit or credit card and bank transfers.
Consequences for companies
The reduced cash payment limit necessitates a review of existing payment procedures and systems to ensure compliance. Businesses should implement measures to track and monitor cash transactions, educate employees about the new rules, and update policies accordingly.
Your Responsibility
The upcoming changes to cash payment regulations underscore the importance of vigilance and compliance in financial operations. Businesses must adapt to these regulatory changes to reduce the risk of non-compliance and protect their operations from potential sanctions. Stay informed, comply with the regulations, and ensure your business is prepared for the upcoming changes.
