Act No. 254 / 2004 Coll.
Law on restrictions on cash payments
Valid
Effective from 01.07.2004
254
THE LAW
of 13 April 2004
on the limitation of cash payments
Parliament has decided on this law of the Czech Republic:
_
Purpose of the law
This law determines when natural and legal persons (hereinafter referred to as "persons') are required to make payment through a person authorised to provide payment services or postal service operators in the form of a postal voucher (hereinafter referred to as" monetary institution ') and provides for a check of compliance with that obligation.
Definition of terms
(1) For the purposes of this Act:
(a) by payment of the transfer or transfer of funds by the payment provider to the payee;
(b) by cash-free payment made by the transfer of funds in the territory of the Czech Republic through a money institution in a Czech or foreign currency or by the transfer of funds by a money institution in a Czech or foreign currency from the territory of the Czech Republic to the territory of another state.
(2) For the purposes of this Act, payment shall not be regarded as:
(a) the transfer of funds in cash to an account with a money institution and their withdrawal from an account with a money institution;
(b) exchange of banknotes or coins for other banknotes or coins through a money institution;
(c) transmission of non-standard damaged domestic banknotes or domestic coins to the Czech National Bank,
(d) retention of banknotes or coins which are reasonably suspected of being falsified or altered and their surrender to the Czech National Bank;
(e) the transfer or transfer of funds in the course of exchange transactions by the person authorised to conduct the exchange activity;
(f) the transfer or transfer of funds in the provision of services consisting of the carriage of banknotes and coins by the person authorised to provide such services; or
(g) the transfer or transfer of funds when providing banknote and coin processing services by the person authorised to provide such services.
Non-cash payments
(1) The obligation to make payments without cash applies to payments made
(a) between persons with a place of residence, residence or registered office in the Czech Republic, branches or organisational units of foreign persons established in the Czech Republic; or
(b) persons with a place of residence, place of residence or registered office in the Czech Republic, branches or organisational units of foreign persons established in the Czech Republic for the benefit of persons with a place of residence or registered office abroad;
where the amount of such payments exceeds the amount laid down by this law.
(2) The obligation referred to in paragraph 1 shall not apply to:
(a) the payment of taxes, charges and other similar cash transactions made under the tax rules or under the Customs Act, unless otherwise provided for by those laws;
(b) compulsory payments resulting from employment relations;
(c) payments of pensions from pension insurance, including lump sums and payments of pension funds and participating funds managed by the pension company;
(d) payments made at a time of crisis, declared under special legislation, 1)
(e) the payment of insurance premiums and the payment of insurance premiums from private insurance;
(f) payments made by the Czech National Bank for the sale of commemorative coins; or
(g) payments made by the court executor, court or administrative authority in execution or enforcement of the decision.
(1) The payment provider whose amount exceeds CZK 270 000 (hereinafter referred to as "limit") is obliged to make the payment cashless.
(2) The beneficiary of a payment whose amount exceeds the limit may not accept such payment unless it has been made without cash.
(3) For the purposes of this Act, payment in foreign currency is converted into crowns by the Czech foreign exchange market exchange rate declared by the Czech National Bank and valid on the date of payment.
(4) All payments in both Czech and foreign currencies made by the same payment provider to the same payee during one calendar day shall be included in the limit.
Transfers
(1) A natural, legal or business natural person commits an offence by infringing an obligation to make payment casually, even though that obligation is imposed on him by this law.
(2) A natural, legal or business natural person commits an offence by accepting a cash payment made in breach of that law.
(3) For the offence referred to in paragraphs 1 and 2, a fine of up to 500 000 CZK may be imposed on a natural person and a legal person and undertaking a fine of up to 5 000 000 CZK.
(1) Transfers under this Act shall be determined by the tax authorities and customs offices in their activities.
(2) The fines are imposed, collected and enforced by an administrative authority which, in the course of its activities, has established an infringement under this law.
Transitional provision
If a cash payment has been agreed before the date of entry into force of this Act, a cash payment may be made in excess of the limit referred to in Paragraph 4 within one year of the date of entry into force of this Act.
EFFECTIVE
That law shall take effect on the first day of the third calendar month following its publication.
Zaoralek v. r.
Klaus v. r.
Spindles v. r.
1) Act No. 240 / 2000 Coll., on crisis management and amending certain laws (Crisis Act), as amended by Act No. 320 / 2002 Coll.
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Regulation Information
| Citation | Act No. 254 / 2004 Coll., on Limitation of Cash Payments |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.04.2004 |
|---|---|
| Effective from | 01.07.2004 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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