Newsroom
Cyprus lawmakers have taken a significant step in tackling money laundering and illegal activities by approving a proposal to limit large cash transactions. The law, passed with 24 votes in favor and 2 against, was introduced by DISY MP Demetris Demetriou and amends the current Law on the Prevention and Combating of Money Laundering.
The new law aims to restrict cash payments for goods and services to a maximum of €10,000 or the equivalent in other currencies. This limit also applies to the purchase and sale of property. If violated, individuals could face hefty fines or even a five-year prison sentence for conducting business transactions or making payments in cash above the set limit.
In addition to cash, the law also targets cash equivalents like bearer negotiable instruments, highly liquid goods, and prepaid cards. The idea is to tighten the screws on money laundering and terrorist financing, aligning Cyprus with a European regulation designed to protect the financial system.
The proposal also includes a provision for temporarily suspending the regulation in the event that other forms of cash payment, such as electronic transactions, become unavailable due to unforeseen circumstances. If someone is caught violating the cash limit, they could face a fine of up to 10% of the illegal transaction amount.
The move comes after troubling revelations, including a report about a Ukrainian woman who entered Cyprus with €400,000, which was later stolen. Lawmakers expressed concern over a lack of proper oversight, with reports showing that over the past three and a half years, €120 million in cash passed through customs without clear tracking of its destination.
While DISY MP Marios Mavridis questioned why individuals should face jail time for holding legal cash, AKEL MP Andreas Pasiourtidis welcomed the proposal as a step towards filling a critical gap in the country’s anti-money laundering efforts. He also emphasized the need for better coordination and monitoring between authorities.
Independent MP Alexandra Attalidou added that the discussions revealed significant issues with transparency, describing Cyprus as a "dry vineyard," where money flows through customs but its destination remains a mystery. She also pointed out that cash transactions enable money laundering and support fraudulent businesses.
With the law now approved, Cyprus is taking concrete steps to close loopholes in its financial system and protect the country from illegal financial activities.
