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Zagreb - The Social Democratic Party (SDP) and Croatian Democratic Union (HDZ) parliamentary caucuses on Wednesday discussed the government-sponsored proposal whereby physical entities are obliged to declare cash of €10,000 or more which they carry to and from the European Union.
According to new EU rules which go into force on 3 June 2021, any person entering or leaving the EU and carrying cash of a value of €10 000 or more has to declare it to the customs authorities. The declaration will be required irrespective of whether travelers are carrying the cash in person, in their luggage, or by means of transport. At the request of the authorities, they will have to make it available to be checked.
Citizens need to be clearly told that it is not prohibited to carry money in or out of the EU but that they need to report it when crossing the border, Boris Lalovac (SDP) said and explained that currently one can take €10,000 or more from Croatia to anywhere in the EU and no one will ask for the origin of that money, however, if you were to carry that money to Bosnia and Herzegovina, you would be questioned about it and if it is not declared on time, it can be confiscated.
Lalovac recalled the connections that Croats in Bosnia and Herzegovina have with Croatia and then many of them buy land in Croatia, do business in Croatia and carry money with them, therefore it is important that everything is transparent.
State-Secretary in the Finance Ministry Zdravko Zrinušić said that citizens could be informed by customs officers at customs crossings. He explained that the Foreign Exchange Operations Act is being amended to ensure the implementation of an EU directive that enters into force on 3 June this year.
Member states have to designate the relevant bodies in charge of checking money at border crossings.
The new regulation extends the definition of cash to cover not only banknotes, coins, and bearer negotiable instruments but also commodities used as highly liquid stores of value such as gold. Cash sent by post, freight, or courier shipment is also included in the scope of the Regulation.
Anyone who does not declare cash is liable to penalties depending on the amount in question however the penalty must not be more than 60% of the unreported amount.
The bill has been put in the fast track procedure as the new EU Regulation enters into force on 3 June.
Regulation (EU) 2018/1672 of the European Parliament and of the Council adopted on 23 October 2018 on controls on cash entering or leaving the Union is applicable from 3 June 2021 repealing Regulation (EC) No 1889/2005 as from that date.
The new Cash Controls Regulation intends to improve the existing system of controls on cash entering or leaving the EU as the latest developments in the Financial Action Task Force’s (FATF) international standards on combating money laundering and terrorism financing will be reflected in the EU legislation.