bank wants to know if my business receives cash payments

Cash is a money laundering risk that the bank must inquire about

The bank asks this because it is required to screen your business for money laundering risk, and cash receipts are a standard point of attention in this regard. This is separate from your person or reputation: every customer with a business account receives similar questions, varying in detail as the risk profile increases. Hospitality, retail and service providers who allow individuals to pay in cash receive this question almost always; a B2B company that invoices exclusively and receives payment by bank can sometimes answer it with a simple "no".

If you do have cash receipts, the bank usually wants an indication of the share in turnover and a description of where that money comes from — similar to the question about the source of the company's assets, but then focused on the cash flow itself. If you do not have a fixed record of the percentage, answer with a reasonable estimate and a brief explanation of how you arrived at it; a cash register system report or an accounting breakdown usually suffices as support. If such evidence is completely lacking, it is more honest to state that than to name a percentage you cannot substantiate — the bank asks this namely often in combination with the question at which banks the enterprise maintains accounts, to assess the overall picture of your cash flows.

Where this follows from: the client due diligence under the Wwft

This question stems from the client due diligence that banks must perform under the Law on the Prevention of Money Laundering and Terrorist Financing. That law obliges the bank to know the nature and background of the business relationship, including the type of cash flows that an undertaking receives, and to repeat or deepen that examination if the risk profile gives reason to do so. The question about cash is therefore not isolated: it is part of the same examination as questions about the ultimate beneficial owners of the company, and is often combined in the same questionnaire.