Cash payments at post office counters are increasingly uncool. Another hurdle has been added to depositing cash in Liechtenstein.
Postfinance, the financial unit of the Swiss postal system is now limiting cash payments to Liechtenstein to 1,000 Swiss francs, as the state-owned company responds to new money laundering regulations imposed on Liechtenstein by the Swiss Financial Market Supervisory Authority (Finma), as first reported by the local newspaper «Vaterland». The limit has already been in place since last February.
Over-the-Counter
For its part, Switzerland’s «Handelszeitung» (in German) reported that Postbank’s Postfinance applied for the limit on its initiative. While Switzerland and Liechtenstein share the Swiss franc as their currency, Finma categorizes Liechtenstein as a foreign country.
So whereas customers in Switzerland can make over-the-counter cash transactions of up to 10,000 francs, that is not the case for those in the principality.
The situation could be described as «two countries separated by a common currency.»
Cash Pie
Postfinance fulfills a basic service mandate when it comes to transferring cash payments, although not without controversy. Last February, a report suggested abolishing the mandate and dividing the cash payment pie among the Swiss banks.
While Elvis Presley remains the «King of Rock and Roll», Swiss francs are seemingly no longer the king of cash in the principality. What would Johnny Cash say?
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