Some Good News on Potential Europe-wide Cash Limitations and Dynamic Currency Conversion

A study carried out on behalf of the European Commission and finalised in early 2018, has confirmed that restrictions on payments in cash would not significantly prevent terrorism financing, although the same study indicated that such restrictions could be useful in combatting money laundering. 

As a result of the finding in relation to terrorism, the Commission has decided not to pursue Europe-wide limitations on cash use at this stage. 

You can read more here 

https://ec.europa.eu/info/news/economy-finance/security-union-commission-publishes-report-restriction-payments-cash-2018-jun-13_en

So good news, but we will need to be alert that this issue may well come up again, given the comment on money laundering. We are in discussion with other interested parties in relation to further potential responses to the Commission.

Also, there has been no indication from the Commission that they will be asking national governments to desist in imposing their own limitatons on cash use. This will need to be discussed with the Commission in due course.

Further good news:

Debbie Smyth and I, representing the ATMIA, met with the European Commission earlier this week to discuss Dynamic Currency Conversion (DCC).

I am happy to report that, whatever happens in relation to transparency, the Commission has decided not to ask for an interim cap on DCC.

The ATMIA will continue to work with the Commission on every aspect of DCC, with the objective of ensuring this service can continue to be offered at ATMs without the imposition of onerous regulations.

ATM DCC is already significantly more transparent than that offered at POS. The ATMIA believes that if the Commission feels it appropriate to review the workings of DCC at all, the review should focus on the POS situation.