European Union introduces new cash and banking regulations

The European Union is implementing several regulatory changes affecting cash transactions and banking services. Under Regulation (EU) 2024/1624, businesses across member states will be prohibited from accepting cash payments exceeding €10,000 starting July 10, 2027. Additionally, cash transactions over €3,000 will require mandatory identity verification to combat money laundering and terrorist financing.

In terms of consumer access, new rules are being developed to facilitate cash withdrawals. One proposal allows citizens to withdraw up to €150 in cash from participating retail stores without making a purchase, using a chip-and-PIN method to assist those in rural areas with limited ATM access. New transparency requirements will also mandate that ATM operators display all fees and exchange rates before a transaction is completed.

Furthermore, the Digital Operational Resilience Act (DORA) is impacting the financial sector's IT compliance. Banks and insurers must now implement documented procedures for vulnerability and patch management, specifically addressing the risks posed by end-of-life software that no longer receives security updates.

In Germany, the Accessibility Strengthening Act (BFSG) is driving improvements in digital banking. Banks are now required to ensure that online banking apps, TAN procedures, and account statements are accessible to individuals with disabilities. While new ATMs must include features like acoustic signals and adjustable contrast, existing machines may be operated for up to 15 years under transition periods.