The free movement of capital and payments within the EU and between the EU and third countries is an essential component in establishing the internal market in financial services. This work provides an expert and practical analysis of the Treaty framework governing free movement of capital and payments, covering the definition of capital payments, the prohibition of restrictions on free movement, together with the permitted exceptions, derogations and safeguard measures. It derives from a section in the looseleaf Law of the EU (Vaughan & Robertson, eds), and is made available here for the benefit of those who don't subscribe to the looseleaf. The provisions are considered in the context of other EU Treaty provisions and the international environment. The author also addresses the increasingly complex EU framework for combating money laundering.