by Andria Papageorgiou

AMLDecember 11, 20240 comments

Cyprus caps large cash transactions

Cyprus lawmakers have approved a crucial amendment to the Law on the Prevention and Combating of Money Laundering, introducing restrictions on large cash transactions. The legislation passed with 24 votes in favor and two against, is aimed at curbing money laundering and illegal activities.

Under the new law, cash payments for goods, services, and property transactions are capped at 10,000 euros or equivalent in other currencies. Violators of this limit could face severe penalties, including substantial fines or imprisonment for up to five years.

The law also extends to cash equivalents such as bearer negotiable instruments, highly liquid goods, and prepaid cards, tightening measures to combat money laundering and terrorist financing. These changes align Cyprus with European regulations designed to enhance the integrity of the financial system.

A provision in the law allows for temporary suspension of these restrictions if electronic payment systems become inaccessible due to unforeseen circumstances. Offenders may incur fines of up to 10% of the amount involved in illegal transactions.