France: Study shows 26% of citizens keep cash at home

A study cited by the Banque de France reveals that 26% of French citizens keep cash at home, with 23% of those individuals holding more than 500 euros in banknotes.

While there is no legal limit on the amount of cash a private individual can keep, the practice carries significant risks. Large sums of money can trigger scrutiny during unexpected tax audits, as authorities may question whether the funds align with declared income or lifestyle. Individuals must be able to justify the origin of the cash, such as through inheritance or bank withdrawals, to comply with anti-money laundering regulations.

Additionally, there are physical and financial security risks. Home insurance policies often provide little to no coverage for stolen cash, or they may impose very low reimbursement ceilings.