Prove You’re Not a Terrorist
By Jeff Thomas, International Man
In recent developments, France has introduced stricter regulations regarding cash transactions and small bank accounts, citing the fight against terrorism as the rationale for these measures. This commonly used justification allows governments to impose a variety of restrictions on their populations. French Finance Minister Michel Sapin emphasized this approach, stating, “[T]errorism feeds on fraud, money laundering, and petty trafficking.”
Under the new rules, cash payments in France will be capped at €1,000, down from the previous limit of €3,000. Additionally, any cash deposits or withdrawals exceeding €10,000 per month must be reported to Tracfin, the agency responsible for combating fraud and money laundering.
Currency exchange regulations are also tightening. Individuals converting over €1,000 to another currency will need to present an identification card, a significant reduction from the previous threshold of €8,000.
Whether you’re making a payment for a car, depositing a dividend, or simply planning a vacation and needing some cash, any of these actions could be scrutinized as potential indicators of terrorism.
France is not acting alone. In the United States, banks are required by law to file “suspicious activity reports” (SARs) whenever a transaction appears questionable. In 2013 alone, banks submitted 1.6 million such reports, with transactions of $5,000 or more often the focus, though even a series of smaller transactions can qualify.
You Are Suspect
The average reader might think, “Isn’t this just standard banking protocol?” Indeed, any banking activity could potentially be flagged as suspicious.
In Italy, Prime Minister Mario Monti began reducing the limit for cash transactions in 2011, cutting it from €2,500 to €1,000, citing tax evasion concerns. Similarly, Spain has prohibited cash transactions exceeding €2,500 under the guise of tackling the black market and tax dodging.
Sweden, the birthplace of the first banknote in 1661, is steadily eliminating cash altogether, with many banks ceasing cash transactions entirely in favor of digital payments. Meanwhile, Denmark’s central bank argues that producing currency is no longer cost-effective.
Israel is also moving towards a cashless future, with plans from Prime Minister Benjamin Netanyahu to phase out cash transactions entirely to curb tax evasion and encourage documented economic activity.
Across the ocean, Mexico enacted a 2012 law banning large cash deals, with severe penalties for non-compliance. In 2014, Uruguay limited cash transactions to $5,000, mandating electronic processing for larger amounts in an effort to enhance the country’s credit ratings.
The Elimination of Paper Currency
In recent years, my discussions have highlighted the likelihood of currency collapse in nations deep in debt, predicting that governments and banks would collaborate to replace paper currency with a fully electronic system. Some readers considered this alarming, but I contend that total control over money is the ultimate goal for both banks and governments.
Implementing a global system in which all financial transactions must occur electronically through banks would grant unprecedented power to these institutions, effectively monitoring the financial activities of individuals.
Governments, in their quest for oversight, would gain invaluable insights into every transaction every individual conducts—an ambition long-held but previously elusive. With little public resistance, these restrictions are being rolled out under the pretext of protecting society, but the consequences for personal financial autonomy are profound.
While many may not regard this transformation as urgent, governments certainly do. Bankers have become unpaid informants, and failure to comply with reporting requirements can result in severe penalties, including imprisonment for bank officials.
The U.S. Justice Department is pushing even further for monitoring, mandating banks to report anything deemed “suspicious.” This increasing level of oversight resembles the features of a totalitarian regime in financial management, with the specter of terrorism serving as a convenient pretext for invasive policies.
The challenge for anyone resisting these measures is clear: you might be labeled as a money launderer, a tax evader, or, in the worst-case scenario, a terrorist. Everyday transactions—paying rent, buying a used vehicle, or even having lunch with cash—could trigger investigations, placing the onus of proof on the individual to demonstrate their innocence.
The core takeaway? A centralized control of currency seems inevitable and alarmingly imminent. The critical question remains: can you protect your wealth? Currently, alternative options such as holding assets in real estate or precious metals offer some degree of safety, provided they are maintained outside jurisdictions inclined toward totalitarian governance.
Retaining control over your wealth is still possible, and internationalization is a significant strategy for its preservation.
Sincerely,
Jeff Thomas
for Economic Prism
[Editor’s Note: One of the best ways to diversify your savings globally is to move it beyond the immediate reach of your government. We have assembled a comprehensive video presentation titled, “Internationalizing Your Assets,” aimed at guiding you through this process.
Our panel of experts, featuring Doug Casey and Peter Schiff, outlines cost-effective strategies for international diversification, including safe methods to establish foreign storage for your gold and silver bullion and transfer savings abroad without triggering intrusive reporting requirements. This essential video for investors is available for free. Click here to watch “Internationalizing Your Assets” right now. The original article appeared on internationalman.com.]
