In the US, that's called structuring and will result in some very uncomfortable conversations.
How would supermarket function otherwise?
The farmer isn't an individual, it's a business as well.
Only it’s very weird to just assume that this might apply to bank deposits…
Is it? I find it weird you think so. If you and I exchange > 3000 between us, nobody will ever know, so the law is pointless. The one place that this can be policed is at the bank level. You're assumption seems to be that if you gave me 3000, I'd just keep it in cash.
In the US, if you make a deposit > $10,000, the bank is regulated to report it. It doesn't matter why you are making that deposit, it gets reported. Applying the same thing to Euro markets only seems natural.
Edit: Actually, even car dealerships have to report someone showing up to buy a car with >$10,000 in cash as well.
We might focus on the law itself and not some hypothetical situation.
> nobody will ever know, so the law is pointless.
You can’t sign a contract for anything worth more than €3000 if you want to pay in cash. If you want to declare your income, pay taxes, prove that you obtained the money legally when you later want to deposit it to an bank, during a tax audit etc. Of course it won’t affect transactions which are already done illegally so it depends on what do you mean by ‘pointless’.
The $10k limit is also a thing in Europe, the exact amount varies by state though (I think).
well, there might be one small issue!
how can you 'show you sold products'? after all, you sold them!!
isn't the cash sufficient to show you sold products? hasn't it been sufficient for thousands of years?
Ad hominem attack but without any additional details to support your assertion?
>> You can deposit whatever amount you want into your bank account, they just might ask questions regarding where the money came from, and if you show that you sold products there's zero issues.
The original assertion was that you'd need to 'show that you sold products'.. to the bank, not your accountant... rather more difficult than it appears at first blush.
Also have you heard about bookeping? It’s also a thing that has existed for thousands of years.
To sum up, what is the standard of records that the bank will accept? Is there one?
does the bank say, "we see you wrote that you sold 20 boxes of produce on Saturday"
Buy yeah, some banks in the EU might be overzealous and small/medium businesses can often run into issues related to their idiotic fraud prevention systems. But I don’t see how is that an issue with the system itself and not with the implementation.
While each transaction might be <3000, on a good weekend, I could see it totaling to be over that amount. At this point, would it be illegal for the farmer to show up to his bank to deposit 3001? Does the farmer now need to waste time to make 2 separate trips to make each deposit < 3000? Maybe take the spouse and kids along so they each make a smaller deposit? Does this require visiting multiple branches?