EU mulls ceilings on cash payments to counter terrorism

The move is part of a wider plan to counter terrorism and its financing after attacks in Paris last November by Islamic State militants that killed 130 people.

"Payments in cash are widely used in the financing of terrorist activities," the Commission paper said listing a number of measures that may be proposed in the coming months.

Controls may be imposed on shipments of cash above 10,000 euros ($10,897.00), extending to mail and freight services the checks already carried out on people crossing borders with too much cash in their pockets.

The EU executive is also considering whether to propose common ceilings on cash payments, which are currently applied inconsistently in EU countries.

"The relevance of potential upper limits to cash payments

could also be explored," the document said.

Germany, Britain and Austria apply no limits to consumers' cash payments, while France imposes a ceiling of 3,000 euros for payments made by French residents. Italy plans to raise its ceiling from 1,000 to 3,000 euros, in a move the government sees useful to boost retail sales.

The Commission is also warning about the risks of allowing the circulation of high denomination notes, notably the 500 euro banknotes, which are "in high demand among criminal elements who engage in physical transportation of cash due to their high value and low volume," the EU paper said.

Last week, the head of the EU anti-fraud office - a Commission department - called for a ban of the 500-euro note in an interview with Reuters over crime fears.

The Commission pledged to work on this topic with the European Central Bank, which issues the euro, but hinted at no concrete measures.

(Reporting by Francesco Guarascio)