The criminalization of cash use in Europe is reaching a new level. Once again, Spain is taking the lead. Anyone who wants to withdraw more than €3,000 from their bank must notify the authorities several days in advance—or risk heavy fines. Even frequent withdrawals under €3,000 can draw the attention of law enforcement. A universal wealth register is approaching, and our money is increasingly being locked inside the banking system.

In Spain, anyone wishing to withdraw €3,000 or more from their bank is treated almost as if they were dealing in weapons of war

In Spain, anyone wishing to withdraw €3,000 or more from their bank is treated almost as if they were dealing in weapons of war. According to a new regulation by the tax authority Agencia Tributaria, such withdrawals must be registered electronically at least 24 hours in advance. For amounts over €100,000, the notice period is 72 hours (Sources: English; Spanish). The intended use for the cash must also be declared. Without proof of this registration, the bank is not allowed to dispense the money. Violators of the rule—or those who try to bypass it by making repeated smaller withdrawals—face fines ranging from at least €600 to as much as €150,000. It's unclear what banks and authorities will consider “normal” behavior versus “evasion,” making even moderate, repeated withdrawals a potential risk.

Previously, withdrawals of €3,000 or more only had to be reported by the bank to the Spanish central bank, which would then notify the tax authority. This reporting requirement still remains in place.

It’s likely that these restrictions on cash use will spread to Germany, as has happened with nearly all cash limitations introduced in other EU countries. Spain has also been a pioneer in setting legal limits on cash payments, which it has steadily lowered to the current threshold of €1,000. That makes it increasingly difficult to justify withdrawing more than €3,000. Whether a lack of trust in the banking system will be accepted as a valid reason is unclear. Meanwhile, in Germany, the EU-mandated cash payment cap of €10,000 has already been agreed upon by the federal government—and talks about lowering it began even before it was enacted.

This new, rigid control measure from the Spanish government makes it increasingly difficult to access cash. It becomes nearly impossible to legally hold significant amounts of cash without the state knowing about it, and increasingly difficult to remove one's money from the banking system—especially in anticipation of a potential financial crisis.

Money Locked in the Banking System

The main function of this regulation may well be to prevent the withdrawal of funds during a crisis—beyond simply intimidating potential cash users. Authorities have already been informed of large cash transactions by banks, both in Spain and throughout the EU. Banks, citing limited cash reserves, have already required several days' notice for large withdrawals. In fact, this stems from instructions issued by bank regulators, which in turn follow directives from the international shadow body known as the Financial Action Task Force (FATF). Banks use the advance notice period to report planned withdrawals to the authorities, giving them time to object.

Until now, banks and the government have had several days' notice if large-scale withdrawals were planned. A potential bank run—where many customers try to withdraw their money at once—could destabilize the entire system, as banks only keep a fraction of customer deposits in liquid form. If such a scenario arises, banking regulators could simply prohibit cash withdrawals and transfers abroad. This would prevent money from leaving the banking system.

What’s materially new in the Spanish regulation is that it's now a severely punishable offense to withdraw your own money from the banking system by, for example, withdrawing €1,000 or €2,000 daily from ATMs—especially across multiple banks. This closes one of the last remaining loopholes that people might use to extract their funds if they fear a banking collapse.

A Comprehensive Wealth Register Is Approaching

In relation to the EU’s plans for a comprehensive wealth register, Spain's new regulation marks another major step forward—if it spreads. Large quantities of cash kept in safes or buried in backyards are particularly difficult to track. But when legal limits only allow receiving €1,000 in cash, and cash withdrawals over €3,000—or smaller amounts within short periods—must be reported with a stated purpose, things begin to look quite different.

More:

The EU Is Increasingly Criminalizing Cash, While the Bundesbank Is Tenderly Concerned About Its Future Feb 20, 2024 – In January, EU institutions agreed on a union-wide ban on cash payments over €10,000. But legislative plans go much further in criminalizing cash users. Meanwhile, the Bundesbank has launched a “Cash Forum” aimed at securing the future of cash in Germany.

Shadow Power FATF Demands Measures Against Cash from the German Government Oct 20, 2022 – Worldwide, financial industries and governments are pushing back against cash. This undeclared war is being coordinated in an undemocratic international arena by bodies like the Financial Action Task Force (FATF). In its latest report on Germany, FATF describes Germans’ high affinity for cash as a major problem and calls for incentives to reduce cash usage.