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It is now (since 2012) illegal in spain for firms to carry out cash transactions larger than 2500 euros. Which means any larger amounts need to be routed through means of payment leaving a paper trail.

This doesn't mean that there won't be fraud, but now it will literally have to involve payments 'on the side'.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Sun Jan 27th, 2013 at 01:24:16 PM EST
[ Parent ]
Having a law on the books is great, but I wonder whether withdrawing the notes from circulation would be more effective by making it a pain to do large scale off the books transactions.

With the ban on cash transactions that you are talking about, it just raises stakes of getting caught.  But if the largest note was a 20 or 50, then it would be a whole lot more difficult to do these things off the books.  Unless you fancy carrying around a trunkload of the stuff. Presumably doing a transaction all in 20s would mean it would weigh 25 times as much as in 500s.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sun Jan 27th, 2013 at 02:17:34 PM EST
[ Parent ]
The ECB is going to issue new series of banknotes. If they were to simply take the old 500 euro notes out of circulation, forcing their conversion, that would be a world of hurt for money launderers and tax evaders, because the conversion would automatically make all the money traceable again.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Jan 27th, 2013 at 02:53:05 PM EST
[ Parent ]
In France, the "professional" cash payment ceiling is €3,000. But between physical persons in a non-professional relationship, there is no limit -- which is an obvious door open to "under the table" payments.
by afew (afew(a in a circle)eurotrib_dot_com) on Mon Jan 28th, 2013 at 02:53:48 AM EST
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Convenient, given that most 'professionals' are physical people.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Jan 29th, 2013 at 03:22:28 AM EST
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