The debate is heating up over the inflow of illicit money through the entry points of the Republic of Cyprus, at a time when, on March 27, the Cypriot parliament is set to discuss a proposed bill to exempt casinos from the €10,000 cash payments limit.

The Unit for Combating Money Laundering (MOKAS) has forwarded 16 cases to the Cyprus Police involving players who wagered suspicious amounts at casinos in 2023 and 2024, as reported by the newspaper Phileleftheros. These cases stem from reports by Integrated Casino Resorts Cyprus Ltd, the operator of Cyprus' casinos, which has submitted a total of 182 reports to MOKAS over the past two years.

>>MPs Ignore Warnings as Casino Cash Exemption Bill Reaches Plenary<<

To date, Phileleftheros reports that the police have investigated only one of these 16 cases, while two others remain under criminal investigation. Additionally, ten reports have been incorporated into broader investigations related to individuals suspected of criminal activities, including illegal immigration.

Another pressing issue emerged in parliament regarding the movement of large sums from casinos in the occupied areas to the government-controlled regions. Witnesses testified that cash, potentially linked to illicit activities, is being transported in suitcases to the Republic's free areas and then transferred abroad through airports and ports.

A significant loophole lies in the fact that Cyprus’ Customs Department accepts profit statements from casinos in the occupied territories without verifying their authenticity. This allows both foreign nationals and Greek Cypriots to declare large sums as "legitimate winnings" and export the funds without restrictions.

>>Cyprus Authorities Warn: Casino Cash Limit Exemption Poses Serious Risks<<

In 2024 alone, as newspaper Politis reports, €667,491 in cash was officially declared by 24 foreign nationals who claimed to have visited Cyprus to gamble at the Limassol casino. However, the casino itself reported that the total cash wagers made by foreign customers amounted to €150 million, with €92 million originating from Israeli players.

The use of cash in casinos has become a contentious issue due to a legislative proposal currently under discussion in parliament. The proposed law, backed by MPs from DISY (certain members), DIKO, DIPA, and former ELAM MP Themistocleous, seeks to exempt casinos from the €10,000 cash transaction limit. A vote on the proposal is scheduled for March 27.

Almost every regulatory and supervisory authority related to the subject in the Republic (MOKAS, the Tax Commissioner, the Central Bank, the Cyprus Bar Association, and CySEC) has opposed exempting casinos from cash transaction restrictions.

The proposal has also sparked fierce political opposition, particularly from AKEL MPs and independent lawmakers, who argue that such an exemption would facilitate suspicious financial transactions.

VOLT MP Alexandra Attalidou voiced strong concerns, emphasizing that Cyprus already faces international scrutiny as a money laundering hub. She also argued that the proposal serves the interests of high-stakes players seeking to evade taxation in their home countries, citing Israeli casino patrons, who are subject to a 35% tax on gambling winnings in Israel.

Even within the government, opinions on the issue remain divided. While the Ministry of Finance supports the proposed law, the Tax Commissioner—who operates under the same ministry—has expressed opposition, warning lawmakers about the potential consequences of lifting cash restrictions for casinos.

The upcoming vote on March 27 will be a critical moment, determining whether Cyprus aligns with international best practices or further opens the door to questionable transactions—reinforcing its reputation as a haven for illicit financial activities.