Order of the Court (Eighth Chamber) of 30 January 2019 — AK and EP (Confiscation by Bulgaria of an undeclared sum leaving the Union)

(Joined Cases C‑335/18 and C‑336/18) ( 1 )

(References for a preliminary ruling — Article 99 of the Rules of Procedure of the Court of Justice — Controls of cash entering or leaving the European Union — Regulation (EC) No 1889/2005 — Article 3(1) — Infringement of the obligation to declare — Article 4(2) — Measure to detain — Article 9(1) — Penalties provided for by national law — National legislation providing that, in addition to the imposition of a penalty of a term of imprisonment or a fine in the amount of one fifth of the amount of the undeclared sum, that sum is to be confiscated by the State — Proportionality)

Free movement of capital and liberalisation of payments — Controls of cash entering or leaving the European Union — Regulation No 1889/2005 — Obligation to declare — Infringement — Penalties — National legislation providing, first, for confiscation by the State of the undeclared sum and, second, for a term of imprisonment of up to five years or a fine in the amount of one fifth of the undeclared sum — Not permissible — Breach of principle of proportionality

(European Parliament and Council Regulation No 1889/2005, Arts 3, 4(2) and 9(1))

(see paras 35-40, operative part)

Operative part

Articles 4(2) and 9(1) of Regulation (EC) No 1889/2005 of the European Parliament and of the Council of 26 October 2005 on controls of cash entering or leaving the Community must be interpreted as precluding national legislation, such as that at issue in the main proceedings, which, for the purpose of penalising an infringement of the obligation to declare provided for in Article 3 of that regulation, provides that, in addition to the imposition of a penalty of a term of imprisonment of up to five years or a fine in the amount of one fifth of the amount of the undeclared sum of cash, that undeclared sum is to be confiscated by the State.

( 1 ) OJ C 276, 6.8.2018.