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June 28, 2005
The EU to Introduce Exchange Controls?
Village Hampden has a post about the upcoming restrictions on cash movements across the EU’s border. Strange Stuff wonders whether I or someone like myself has a view on this. Slightly odd question really as there aren’t that many things I don’t have a view on.
I’m not sure if people know that this is a restriction already enshrined in most domestic law. It really is about limiting cash transfers and is mostly justified by the drugs trade (not terrorism). We had a recent experience here in Portugal. A guy in Angloa wanted a car purchased for him so he handed over $30,000 in cash to a buddy of mine. That money went into the bank where it got stuck for three weeks as we had to prove the source of such a cash sum. Similarly, any deposit of over $10,000 in the US has to be reported to the Feds. Wandering through an airport with more than $10,000 on you (as Radley Balko points out) is prima facie evidence that it is drugs money. You have to prove that it isn’t to get it back.
No, I’m not in favour of these laws at all. But just to make the point, they have nothing to do with exchange controls.
June 28, 2005 in European Union | Permalink
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Comments
So the controls wheren't lifted on cash, just the values that cause suspision. I didn't know that ... but it is justifiable.
Since I don't know much about economics or what happens when you walk into a bank with a vast pile of cash (but would love to perform the experiment) I wanted the view of someone I trust on arguments about economics.
Tim adds: Well, I do know quitea bit about this. Once took $250,000 out of a bank in Cheltenham and flew to Russia with it. All perfectly legal back then, wouldn’t be now.....well, it would be legal, but I’d have a lot of explaining to do.
Posted by: chris | Jun 28, 2005 1:11:19 PM
Weird that the banking system goes to enormous lengths to prevent money laundering. I used to work for a bank and was made to sit through annual training on how to prevent money laundering. Meanwhile the government is happily opening up a UK casino which will make it easy as pie to launder money!
Posted by: Cruella | Jun 28, 2005 5:14:25 PM
Yet another reason not to punish peoples chemical choices.
Posted by: Rob Read | Jun 28, 2005 5:51:35 PM
