€5,000 cash payment limitation increases transparency
Today’s economy requires businesses to become increasingly more transparent. That is precisely why a higher level of transparency is one of the key priorities defined in the Antwerp Diamond Masterplan, summarized in the so-called ‘fifth C’ of Compliance, Confidence and CSR. The cash payment regulations fit in perfectly with that philosophy.
Since April 16th 2012, the use of cash payments in transactions is limited by the anti-money laundering legislation to a maximum of €5,000.
This means that a maximum of 10% of the transaction price (amount on the invoice) or the service provided can be paid in cash, pre-payments and partial payments included, up to an amount of €5,000. More precisley even if this 10% exceeds the amount of €5,000, you are only allowed to pay €5,000 cash.
Example 1: Suppose your transaction amounts to €10,000 euro. A maximum of 10% of the transaction price can be paid in cash with a maximum of €5,000. 10% of €10,000 is €1,000. This does not exceed €5,000. The maximum amount that can be paid in cash is €1,000.
Example 2: Suppose your transaction price is higher, for example amounting to €600,000. Again, a maximum of 10% of the transaction price can be paid in cash with a maximum of €5,000. 10% of €600,000 is €60,000. This exceeds the maximum of €5,000. Thus, the maximum amount that can be paid in cash is €5,000.
