Malta has imposed a €10,000 cap on cash transactions for the sale of property and other valuable items. 

The limit on cash transactions, which was introduced into law on Tuesday through a legal notice, is intended to clamp down on money laundering activities. 

Times of Malta reported in January that the government was moving forward with its plans to introduce the cash cap, which had first been put to cabinet six years ago. 

Previously there was no cap on the amount of cash that could exchange hands, with the practice favoured among criminals looking to conceal the source of their gains. 

What does the €10,000 limit apply to?

The €10,000 limit is being imposed on the sale of property, antiques, jewellery, precious metals, precious stones, pearls, vehicles, seacraft, and works of art.

A person found to be in breach of this regulation will be subject to a fine of not less than 40 per cent of the sum of money that was received, or otherwise transacted. 

Criminal proceedings for these offences will be barred by prescription after a five-year period.

Why was the ban introduced?

In 2019, Malta failed a review of its financial crime laws and enforcement, with Council of Europe body Moneyval expressing concern that authorities appeared unable to quickly pursue high-level money laundering cases related to financial, bribery and corruption offences.

The cash cap proposal had first been floated in 2015. But a source familiar with that proposal told Times of Malta that the government at the time had little appetite for such legislation, fearing it would not go down well with the electorate, particularly the business community.

Since then, pressure from international institutions has mounted on Malta to clamp down on money laundering and tax evasion.

The majority of EU countries have similar bans of varying amounts, ranging from €500 in Greece to €15,000 in Poland.