Government Moves to Curb Cash Transactions in Norway
In a significant shift toward tackling economic crime and terrorist financing, Norway’s Finance Minister Jens Stoltenberg has proposed the removal of the 1000 krone banknote and plans to decrease the cash payment limits mandated by law. Currently, these limits stand at NOK 20,000 for consumer transactions and NOK 40,000 for merchants; the government aims to reduce both to NOK 10,000.
Kari Olrud Moen, CEO of Finans Norge, applauded the proposals, calling them “very good moves.” She highlighted the urgent need for such measures given the dwindling use of cash in Norway, where only two percent of all transactions occur in cash and account for just one percent of the total payment value.
The government’s press release underscores a stark reality: cash can be easily misappropriated, often finding its way into the shadows of the criminal economy. “Cash can be stored and utilized outside the regular economic cycle, making it a tool frequently exploited in illegal activities,” the government pointed out.
“In taking these steps, the government is bolstering its fight against economic crime,” Moen noted. “These changes will complicate the ability of criminals to conceal their activities through cash transactions while having minimal impact on regular consumers’ cash usage.”
EU Regulations on Money Laundering
In a related initiative, the Ministry of Finance plans to circulate for consultation a report by the end of January that outlines how Norway will implement the EU’s new money laundering regulations. This comprehensive package is a critical element of Europe’s ongoing fight against money laundering and terrorism financing, aimed at both prevention and strengthening defenses against profit-motivated crimes.
“This is excellent news,” Moen remarked. “It is vital for Norway to engage actively in the collective European battle against economic crime, and the government’s decision to adopt these crucial EU regulations concurrently is commendable.”
As Norway takes these proactive measures, it positions itself alongside its European counterparts in a concerted effort to foster a more secure and transparent financial landscape.