| 19 May 2007
It has always been an outrage that it takes the best part of a week to make
an international transfer of money, with various banks taking a bite out of
your cash en route.
Technology was supposed to make things better, but if you've had to move significant
sums of money around the world in the last year or two, you'll have found out
that new administrative barriers have more than cancelled out any gains in speed
won from the abolition of exchange controls and the spread of universal instant
communication through the Internet.
Mouthing the sacred mantras of money-laundering and counter-terrorism, international
authorities such as the Financial Action Task Force have imposed a battery of
new rules, giving the banks a fresh excuse for their dilatory obfuscation.
But in case you're tempted just to carry the money for a deposit on that new
beach-side villa in your wallet, the European Union has helpfully agreed a Directive
obliging travellers to declare cash being carried into or out of the Union.
As from 15 June 2007, people who are either entering or leaving the EU with
10,000 Euros or the equivalent in other currencies or payable instruments will
be required to make a declaration, including their own personal details, the
owner of the cash, the intended recipient of the cash, the amount and nature
of the cash, the provenance and intended use of the cash, the transport route
and the means of transport.
In many EU countries, cash may be seized if the border authorities have reasonable
grounds to suspect that it is either the proceeds of, or is intended for use
in, unlawful conduct. And national authorities have wide powers to share the
information they obtain with other countries both inside and outside the EU.
To make sure the money has been taxed, for instance.
It's just the thin end of the wedge, of course. 'They' won't be content until
they know where your every penny comes from and where it goes. Probably 'they'
will end up by banning cash altogether, and your wealth will be in a microchip
in your little finger, with a wireless connection to the Federal Reserve or
the ECB. Not the World Bank, though, it might get given to the wrong person!
You have been reading an entry on the following blog:
Penelope Wise
Penny Wise but not Pound Foolish! But remember: I am not offering investment advice. My comments are just for your general information; I do not recommend investments, and you should take professional advice before entering any investment contract.
Penelope blogs on investment and financial services around the world: mainstream and alternative. Contact: penny@lowtax.net
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