MPs vote to cap cash purchases at €3,000, tighter than EU limit

Cash payments of more than €3,000 are to be banned after MPs voted for a stricter limit than the European Union’s planned ceiling of €10,000.

The EU proposed the limit, which also applies to cryptocurrency, earlier this year as part of a wider package of measures to crack down on money laundering and illegal drugs transactions.

Opposition parties in the Dutch parliament put forward an alternative bill that would set the maximum at €10,000, but it failed to win a majority.

Coalition parties NSC, BBB and PVV also opposed the plan, arguing it would stigmatise cash buyers and people who distrust or struggle with digital payments, but only NSC voted for the higher limit. The VVD has long supported a €3,000 limit.

VVD finance minister Eelco Heinen said a higher limit would make the Netherlands more attractive to criminals than countries such as France and Belgium, where tighter rules are already in place.

“You can get an expensive coat or watch for a few thousand euros, but if you’re laundering drug money, these are the kind of sums we need to place restrictions on,” he said.

The Dutch national bank said in April it was important to balance an accessible banking system against effective measures to fight organised crime.

“On the one hand DNB supports accessible transactions, which includes cash. But on the other hand DNB has a role to play in preventing financial economic crime,” a spokesman said.