Withdrawing large sums in cash is no longer possible in Spain without the government’s approval. Those withdrawing €3,000 or more must notify Spain’s tax agency, Agencia Tributaria, in advance. Withdrawals at or exceeding €100,000 require a 72-hour approval process, and the tax agency is requesting a 24-hour mandatory notification for any amount over €3,000.
A few news outlets are reporting that the Spanish government will impose a €150,000 fine on those who fail to report, but Project Veritas found that to be false. Article 4 of Order EHA/98/2010 states that these new measures are safeguarding institutions against money laundering and terrorism, the typical scapegoats.
In truth, these measures are intended to provide the government with control over capital. Bank runs occur when people complete lose confidence in the system, and the government is ensuring that it never reaches that point because they can simply implement a freeze. Moreover, governments everywhere are on a hunt for taxes and the entire war on cash is based on the belief that citizens are attempting to bypass taxes.
There is a reason that ATMs impose withdrawal limits, forcing customers to go directly to their bank branch. Spain’s reporting system requires banks to submit information through digital identification methods like CL@ve PIN, an electronic ID, or a digital certificate. The government has ordered banks to deny customers their funds if they are unable to provide proper documentation.
What constitutes “suspicious activity” has broadened in scope, not just in Spain but globally. The Spanish government has said that repeated withdrawals or a few hundred euros at a time will be considered suspicious. Citizens are expected to notify the government of how they plan to spend their money by providing personal identification to their banks.
Governments believe that all currency in circulation truly belongs to them. All transactions should be traceable and taxable. These measures will tighten as the Sovereign Debt Crisis intensifies and governments become desperate for funds and control.