The automotive sector sees little benefit from a more relaxed cash policy
- Michel van Roon
- Jul 14
- 3 min read
“DNB gives banks more leeway to accept cash", read the headline of a Financieel Dagblad article on June 27. Banks, De Nederlandsche Bank and business organizations agree that genuinely legitimate cash transactions by entrepreneurs shouldn’t automatically be deemed suspicious. The paper points out that there are numerous lawsuits in which banks have wrongly closed an entrepreneur’s account, often in cases where cash was involved.
Banks themselves (via the Dutch Banking Association) admit they have gone too far in policing cash in recent years. Companies, consumers and DNB concur. It’s time for new rules. Under the revised policy, banks will be less strict with entrepreneurs whose annual cash deposits stay below a certain threshold, which is undeniably good news.
New policy: €600 cash per week
According to the Financieel Dagblad, each bank sets its own limits. The Dutch Banking Association cites examples of € 20,000 per year for individuals and € 30,000 for businesses—equivalent to about € 600 a week in cash transactions. Banks will also no longer automatically raise the alarm over a single € 200 banknote, which until now (along with the € 500) has been treated as presumptively suspicious. That’s welcome relief for, say, a beach-bar owner serving German tourists, but it doesn’t move the needle for the automotive sector.
Automotive remains under strict supervision Because risk profiles differ by sector, banks set cash limits per client group. Scrap dealers, car dealerships and hospitality remain classified as high-risk, meaning deposit and withdrawal patterns will still be closely monitored, and any anomalies will continue to trigger alerts.
What does this mean in practice?
Non-cash transactions are preferred because they contribute to a safer society. In the Netherlands, online banking is fully entrenched, and has become the norm even for car purchases. But many of our European trading partners still rely heavily on cash, which creates friction in cross-border automotive trade. On one hand, we want to crack down on crime by minimizing cash; on the other, we want free trade, which ideally includes the option of cash payments.
Removing trade barriers The Dutch compliance system is so stringent that a seller who unwittingly does business with a criminal abroad can be prosecuted if they can’t prove they “did not know or could not have known” the counterparty was illicit. That overly rigid approach has become a genuine barrier to trade for Dutch exporters.
What can you do? If you want to eliminate any risk of suspicion, insist on non-cash payments. At the same time, cash remains legal tender, and you’re entitled to accept it, especially when dealing with partners who have limited access to online banking. Stay up to date on the latest cash-payment regulations. To mitigate risks, perform a robust, end-to-end KYC check on every buyer, thereby addressing potential issues at the outset of the relationship.
What else would help our sector? Blanket suspicion of sellers unfairly stigmatizes the automotive industry. We therefore call for more targeted scrutiny of buyers’ behavior abroad. While a standard KYC is a good start, tracking export transactions against VAT returns would be even better. Technically, it should be straightforward to reconcile vehicle shipments with VAT filings in the destination country.
Work toward harmonizing payment habits
We also urge policymakers, alongside stricter cash controls, to synchronize payment practices across EU member states. Put digitalization and cultural factors on the agenda, so that the share of non-cash transactions can grow Europe-wide. That alone would boost cross-border trade and strengthen our economy, an outcome from which we all benefit.
