EU cash ban and new super financial authority: AMLA

An attack on your fundamental right to informational self-determination and your personal data

On May 30, 2024, the EU decided to ban cash from 10,000 euros, which will come into force in 2027. In addition, a new super authority, the Anti-Money Laundering Authority (AMLA), will be set up in Frankfurt am Main. These measures represent a massive intervention in the Fundamental right on informational self-determination and data protection. However, there is a legal way to defend yourself against this surveillance and protect your financial privacy: setting up a LLC in the USA in combination with a US bank account.

The cash ban: a blow to freedom and data protection

From 2027, cash payments over €10,000 will be prohibited throughout the EU. This regulation affects not only commercial transactions, but also private sales if the seller is classified as commercial. Consumers must identify themselves and prove the origin of the cash. This data is recorded and stored by the retailer and can be checked by the AMLA - a clear invasion of privacy and the right to privacy. Data protection.

The AMLA: a super authority with far-reaching powers

The AMLA will act as the central EU authority and has extensive powers to monitor compliance with the new regulations. It will ensure that measures to combat money laundering and terrorist financing are effectively enforced throughout the EU. This strict monitoring poses a significant threat to the fundamental right to informational self-determination and the protection of personal data, as sensitive information is collected and stored.

Data protection under fire

Another critical aspect of the new cash ban is the collection and storage of personal data by retailers. Consumers not only have to disclose their identity, but also the origin of the cash. This information is stored by the retailer and can be viewed by the AMLA. This invasion of privacy violates fundamental data protection principles and undermines citizens' trust in the protection of their personal data.

Cash as an anchor of stability and protection of privacy

Contrary to the assertion that cash is mainly used for illegal activities, the Deutsche Bundesbank emphasizes the importance of cash for stability in times of crisis. Cash guarantees freedom of choice when making payments and protects the privacy of citizens. The National Cash Forum, consisting of merchants, consumer advocates and the financial sector, is committed to the preservation of coins and bills and emphasizes that cash possession is not automatically suspicious and protects citizens' personal data.

The solution: An LLC in the USA with a US bank account

An effective strategy for protecting your financial data from access by the German tax authorities is to set up a Limited Liability Company (LLC) in the USA. The United States does not participate in international data exchange, which means that your finances are safe from prying eyes with a US LLC. Countries like DelawareNevada and Wyoming also offer particularly favorable tax laws and strict data protection regulations that increase your protection even further. With an LLC in the USA, you can control what information you disclose to the German tax authorities and thus protect your right to informational self-determination.

By opening a US bank account linked to your LLC, you can replace cash with bank transfers while ensuring that your financial data and personal information is protected from access by EU authorities and the German tax office. You decide for yourself what information you disclose - such as taxable profits, but not sensitive data such as account balances or transaction details. This protects you from tax audits, preserves your financial privacy and protects your personal data.

FAQs

What is the EU cash ban and when will it come into force?

The EU cash ban prohibits cash payments over 10,000 euros from 2027. This regulation affects both commercial and private transactions.

What data do consumers have to disclose as part of the cash ban?

Consumers must identify themselves and prove the origin of the cash. This information is recorded and stored by the retailer and can be checked by the new super financial authority AMLA.

What is the AMLA and what powers does it have?

The AMLA (Anti-Money Laundering Authority) is a central EU authority with extensive powers to monitor compliance with the new money laundering regulations. It can collect and store sensitive information in order to combat money laundering and terrorist financing.

How does an LLC in the USA protect my financial privacy?

By establishing an LLC in the USA, especially in states with strict data protection laws such as Delaware, Nevada or Wyomingyou can protect your financial data from access by EU authorities and the German tax office. An LLC allows you to use bank transfers without disclosing sensitive data.

Why is cash important for stability and data protection?

Cash offers freedom of choice when making payments and protects citizens' privacy. It is an anchor of stability in times of crisis and ensures that personal data is not disclosed unnecessarily.

How can I ensure that my financial data is protected from unauthorized access?

By opening a US bank account linked to your LLC, you can ensure that your financial data and personal information is protected from access by EU authorities and the German tax office. This allows you to decide for yourself what information you disclose.

Conclusion: Enforce your fundamental right to informational self-determination and data protection

The EU's new measures may be well-intentioned, but they undermine the fundamental right to informational self-determination and jeopardize data protection. With a LLC in the USA and a linked US bank account however, you have a legal and effective way to defend yourself against these intrusions. With careful planning and expert advice, you can limit the power of the IRS and AMLA, maintain control over your financial data and protect your personal information. Don't let them take away your fundamental right to informational self-determination and the protection of your data - take the right steps now to protect your privacy.