National Caps

The cabinet agreed in the coalition agreement that there would be no more national caps, but in this case, it is happening. A national cap is when a country goes further than strictly necessary in the transposition of European regulations. According to Senator Baumgarten (JA21), the bill has become much stricter than EU policy prescribes. It even involves a double national cap because it is being implemented earlier than requested by the European Union (EU), according to Baumgarten. PVV Senator Van Strien pointed out the ministers wordplay, who spoke of member state option while it concerns a national cap on European legislation. Senator Van den Oetelaar (FVD) asked why the Netherlands wants to be the best student in the class by choosing €3,000 instead of €10,000 as the limit for cash payments.

Implementation and Enforcement

The minister indicated that he would designate exceptions with a so-called General Administrative Measure. Senator Koffeman (PvdD) asked how far the minister is with this exceptions decision so that entrepreneurs know where they stand. Senator Van Apeldoorn (SP) also wanted to know this. He asked what exceptions are being made and when it will be implemented. For SGP Senator Schalk, the question was whether a ban on payments starting from €3,000 is enforceable and maintainable. Suppose a future evaluation shows that the €10,000 limit works in the rest of Europe, then we must amend the law again, according to Schalk. Heinen said he would review the exceptions decision after the summer and present it to both Houses with a heavy pre-approval.

Relationship to Neighboring Countries

Many senators looked at the limits in the countries around us and how these relate to the Dutch limit of €3,000 and how this relates to doing business in border areas. In Belgium, it is €3,000 just like in the Dutch proposal, in Germany, it is €10,000, and in France €1,000. D66 Senator Aerdts said that she did not have the illusion that money laundering would disappear due to this law, but it makes it harder for criminals to launder money because they have to make more purchases for smaller amounts. Aerdts asked why a lower limit was not chosen. In other countries, that has been successful according to her. Senator Vogels (VVD) agreed with her. According to Vogels, it also weighs that the Council of State has no objections to a ban on cash payments starting from €3,000 and above.

International Business

Senator Martens (GroenLinks-PvdA) asked the minister how this law will apply to entrepreneurs who are internationally active in countries where cash is still widely used. He asked whether the minister would commit to consulting with parties that are partly dependent on cash payments and whether he would consider a possible waterbed effect. BBB Senator Kroon also pointed out these possible problems and called them imperfections. Cash prevents according to him in West Africa dependence on an intermediary, provides trust, and makes transaction risks smaller. Minister Heinen promised to talk to exporters and involve the supervisor. He will inform the House about the outcomes.

Support

Senator Holterhues (ChristenUnie, speaking on behalf of CDA) asked about the support for the measure. European measures are often under pressure in public opinion. European cooperation and harmonization are of great importance. ChristenUnie and CDA support the national cap set by the Netherlands but fear that there is insufficient support. The minister said that he came to €3,000 through consultations with representatives and traders. The support for the proposal has been organized in this way, according to Heinen.

Four motions have been submitted:

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  The Koffeman motion regarding a ban for financial institutions to refuse labor-intensive client groups. The minister asked if Koffeman wanted to postpone the motion until a debate on the implementing law regarding this. If Koffeman does not postpone the motion, then Heinen advises against the motion at this time.
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  The Koffeman motion regarding the introduction of a Declaration of Financial Behavior. The minister advised against the motion.
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  The Van den Oetelaar motion regarding increasing the cash limit. This motion was also advised against by the minister.
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  The Baumgarten motion regarding the exceptions decision for entrepreneurs due to security risks. The motion received the advice Judgment Chamber from the minister.

The proposal concerns an amendment to the Act on the Prevention of Money Laundering and Financing of Terrorism and the Economic Offenses Act. In the original bill, measures were announced to make the approach to money laundering more effective. The measures stemmed from the broader commitment of the cabinet to increase the integrity of the financial sector, also in the area of preventing and combating the financing of terrorism. In the meantime, the bill has been adjusted such that of the four measures included in the bill, only the ban for professional or business traders in goods, to carry out transactions in cash exceeding €3,000, will be enforced.