How it works if you decide to withdraw all the money deposited
Let’s assume that Mr. Rossi has decided to close his current account and that he wants to withdraw all the money that is deposited on it. Or, we think of Mrs. Rosselli who, in view of an urgent payment, rushes to the bank to withdraw all the savings on her current account from an ATM. Are these two taxpayers liable to a fine in so far as they withdraw their savings? At a first reading, one might think that there is a strong contradiction: why should I risk committing a legal action if I withdraw money that is the result of my savings and my work compensation?
In fact, the issue is much more complex and is based on current legislation that limits the use and circulation of cash. Withdrawing all the money from the checking account triggers the report then?
What the law says about it
The legislation regarding the use of cash is acting in a way that increasingly tightens the concession to use cash for transfers. According to the provisions of art.33 of Legislative Decree 231/2007, modified by Legislative Decree no. 90/2017: the prevention of the use of the financial system for the purpose of money laundering or criminal activities requires an adaptation to EU 2015/849 rules. This means that the banking control procedures are aimed at extinguishing phenomena that fall within the definition of money laundering and in particular concern:
- concealment or concealment of assets;
- the conversion or transfer of goods from criminal activity for the purpose of concealing their illegal origin;
- participation in one of the previous acts or the association to commit this act.
Based on this type of limitation, we know that from next July 1st, for example, transfers of cash will be limited to the sum of 1,999.99 euros, under penalty of a fine. This type of limitation, however, does not concern the payment or withdrawal of cash to your current account.
Therefore, can Mr. Rossi and Ms Rosselli proceed with the withdrawal of a high amount?
What data intermediaries must provide to the control units
Does withdrawing all the money from my checking account trigger the report? In theory, Mr. Rossi could extinguish his current account by withdrawing all the money deposited. However, there is another regulatory limit that should be known before rushing to the bank. According to the provisions of art. 3 of the UIF decree of 28 March 2019, Italian Post and banking intermediaries are required to: provide data relating to movements of cash for an amount equal to or greater than 10 thousand euros per month. For the withdrawal of amounts greater than 12,500 euros, the anti-money laundering legislation requires the presence of a qualified intermediary.
Without prejudice to these premises, the threshold limit for the transfer of cash does not equally affect withdrawals. This means that the account holder does not risk penalties if he closes his relations with the bank by withdrawing all the cash deposited in his account. It is legitimate, however, that the control units, if suspicious movements occur, are authorized to carry out more in-depth checks. In cases of greater suspicion, direct control by the Public Prosecutor’s Office cannot be excluded.