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A proposal to exempt casinos from Cyprus' €10,000 cash transaction limit has sparked a heated debate in parliament, with regulators warning that such a move could open the door to money laundering and create unequal rules for businesses.
The suggestion, backed by the DIKO and DIPA-Cooperation parliamentary groups, would allow the island's only casino resort to continue accepting large cash payments — a practice that makes up 94% of its monthly €32 million transaction volume, according to the Gaming Commission during yesterday’s discussion.
Proponents argue that the restriction puts the Cyprus casino at a competitive disadvantage compared to rival establishments in Europe and could push high rollers to the north, where the cash cap doesn't apply. They insist that the casino already follows strict anti-money laundering checks and that the exemption would protect a profitable investment for the country.
However, the proposal has raised alarm bells among regulators and legal experts. The anti-money laundering authority MOKAS reported that around 25% of suspicious transactions flagged by the casino in the last two years involved cash, while the Cyprus Bar Association warned that singling out casinos for special treatment would violate the constitutional principle of equal treatment.
"If we allow an exemption for casinos, why not for land developers or other regulated sectors?" asked Pantelis Christofides, head of the Bar Association's anti-money laundering committee.
The Finance Ministry, the Central Bank, and the Securities and Exchange Commission also opposed the exemption, arguing that the current legislation — which aligns with upcoming EU-wide rules — should apply to all businesses equally.
The debate has exposed a wider divide between those prioritizing investment and competitiveness and those pushing for stronger financial safeguards.
AKEL MP Andreas Pasiourtides warned that Cyprus, already under international scrutiny for its role in money laundering cases in recent years, cannot afford to weaken its defences.
"Casinos are high-risk businesses by definition," he said. "We see no reason why they should be exempted from rules designed to combat money laundering."
The House Institutions Committee will revisit the proposal in the coming weeks, with the final decision expected to test Cyprus' balancing act between attracting investment and upholding its anti-money laundering commitments.
