Should travelers release their Bank Account information? Is this a new form of Capital Controls?
The new law passed by the European Union (EU) began its phased rollout on October 12, 2025, is the Entry/Exit System (EES). This system’s primary function is to replace manual passport stamping with digital registration, focusing on biometrics and tracking stays.
What is being collected? The EES electronically registers non-EU travelers (including UK and US citizens) and records their:
Biometric data (fingerprints and a facial image).
Personal and travel document details.
Dates and places of entry and exit.
The Goal: The EES aims to enhance security, modernize border management, and automatically track the 90-day limit for short stays in the Schengen area to prevent overstaying.
Regarding Funds: The EES itself does not mandate travelers to register their bank accounts. However, under the long-standing Schengen Border Code, border officers are already permitted to ask non-EU travelers to demonstrate they have sufficient means of subsistence (money) for their stay and return journey. This check is usually done via a combination of credit cards, cash, or asking about lodging, but occasionally, an officer may ask for bank statements if there are concerns.
The EES does not change this pre-existing requirement, but the new, more systematic checks might make officers more inclined to verify all entry conditions, including funds, in certain cases.
Is This a Form of Capital Control?
No, the EES and standard border fund checks are generally not considered a form of capital control.
Definition of Capital Controls: Capital controls are measures implemented by a government, central bank, or regulatory body to limit or restrict the flow of foreign capital into or out of the domestic economy. These are macroeconomic policies designed to regulate the national financial system, often to prevent capital flight, stabilize a currency, or protect domestic industries. They involve taxes, outright prohibitions, or volume restrictions on financial transactions (like buying foreign assets or moving large sums of money).
Purpose of Border Fund Checks: The requirement for travelers to show “sufficient funds” at a border crossing is an immigration and security measure, not a financial one. Its purpose is purely to verify that the traveler:
- Can sustain themselves during their visit without becoming a financial burden on the host country.
- Is genuinely a tourist or short-term visitor and intends to return home.
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