It is less and less common to carry cash in your wallet or in a purse. The dominance of credit card payment and the rise of contactless means of payment make paying in cash seem like a method from another era, but obviously it is still just as valid. Even with its limitations and restrictions.
Thus, the law limits the use of cash (in operations in which any professional is involved) but also limits the amount of cash that anyone can carry without having to declare it obligatorily. This second limitation may seem like a matter that does not concern us, but it is convenient to know it well to avoid problems.
The reason why the amount of cash that a person carries without having to declare its origin is limited is clear: with it they want to put a fence on the underground economy and tax fraud, associated with cash. For this reason, limits are set above which it is essential to carry a statement with the origin of the money.
In Spain, it is Law 10/2010, of April 28, on the prevention of money laundering and terrorist financing that deals with this matter. In its text, the limits of cash that a person can take with him in any of his movements that imply a transfer outside his home are determined.
In its article 34, the law explains that all amounts equal to or greater than 10,000 euros or its equivalent in foreign currency will need a declaration of their origin whenever that cash is entered or exited in the national territory.
For its part, the limit amounts to 100,000 euros or more or its equivalent in foreign currency in cases of transfers or movements in the territory. If it is exceeded, the bearer of these amounts will be obliged to attach a statement with the origin of the money.
This is the money that the State forces to declare
When accounting for this money, the regulations not only refer to what a person traditionally understands by cash (that is, coins and bills). All means of payment that are computed for the aforementioned limits are:
-Paper and national and foreign metallic currency.
-The negotiable effects or means of payment to the bearer: traveler’s checks, checks, promissory notes, payment orders…
-Prepaid cards.
-Raw materials used as highly liquid deposits. For example, gold.
How should this cash be declared?
In the event that, added to all the means of payment listed in the previous section, the citizen exceeds the established limits, he will have to declare the origin of the money he is carrying. The regulations explain that this declaration will also have to include more data.
Specifically, the declaration “must contain accurate information regarding the bearer, owner, recipient, sender, amount, nature, origin, intended use, itinerary and mode of transportation of the means of payment” and must also be signed by the person who carry the money.
In which cases can the State withhold this money?
The law explains that in the event that the data is incorrect or appears incomplete, it will be understood that the obligation of the declaration has been breached, which is why the bearer of the means of payment can see how the State withholds that money. Article 35 of the law warns that the authorities may retain the money for a period of 30 days (extendable to 90 in some cases) in the following situations:
-When the declaration is not presented.
-When the declaration is not presented within the corresponding period.
-When the declaration has erroneous or incomplete data or errors in the estimate of money that exceed 10% of the total or more than 3,000 euros.
-When the means of payment are not made available to the authorities.
-When it is suspected that the means of payment are linked to criminal activities, even in cases in which they are well declared.
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