New Limits on Prepaid Cards and Cash for Travelers

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New Regulations on Cash Transfers within the EU

In the ongoing battle against tax evasion and its related illicit activities, the European Union, alongside its member states, has been rigorously tightening regulations surrounding cash transactions.
Primarily focused on combating money laundering, specific limits have been established regarding the amount of cash travelers may carry when crossing borders between the EU and non-EU countries.

Currently, travelers are obligated to declare any cash exceeding €10,000 to customs authorities.
While these regulations have traditionally applied only to physical cash, significant changes are on the horizon.

Expansion of Regulations to Include Cashless Instruments

The Italian government is preparing to extend these regulations to cover cashless payment methods that do not require the identification of the account holder.
This includes anonymous prepaid cards, which have seen declining usage due to anti-money laundering directives.

Many travelers find these prepaid cards appealing for security reasons, as they can alleviate concerns about carrying cash that may be lost or stolen.
Nonetheless, caution is advised, as individuals may unintentionally exceed the legal thresholds.

Current and Upcoming Limits on Cash and Prepaid Cards

The existing cash limit at EU borders remains at €10,000, applicable both when entering and leaving the EU.
Controls are guided by European Regulation No.
2018/1672, which extends regulations to all payment instruments capable of being utilized anonymously.

Italy is currently drafting a legislative decree to implement these changes, which will affect various payment methods, including:

• Anonymous prepaid cards
• Traveler’s checks
• Bearer bonds
• Money orders or bearer payment orders

Crucially, all cash and cashless instruments will be cumulatively evaluated.
This means travelers can easily exceed the €10,000 threshold by combining various payment methods.

Consequences of Non-Compliance

Until the decree is officially implemented, the €10,000 limit applies solely to cash.
Travelers may not be prohibited from carrying more than this amount, but any excess requires declaration.

Failure to comply can lead to severe penalties, including the seizure of undeclared funds, which can be up to:

• 50% for amounts up to €20,000
• 70% for amounts up to €100,000
• 100% for amounts exceeding €100,000

Inaccurate declarations also incur penalties based on the undeclared amount.
Thus, travelers are advised to ensure full compliance to avoid not only financial loss but also scrutiny regarding the source of funds.

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