In a move that could severely damage Cyprus’s credibility on the global stage, the House of Representatives will on Thursday, March 27, vote on a controversial bill that seeks to exempt casinos from the €10,000 cap on cash transactions. The proposal, introduced by MPs from DISY, DIKO, DIPA, and former ELAM MP Andreas Themistokleous, comes just months after the same Parliament passed a landmark law aligning with European anti-money laundering regulations.

This proposed exemption has triggered fierce backlash from regulators, independent watchdogs, opposition parties, and legal experts—yet proponents are rushing the bill to a vote.

The current law, enacted in December 2024, set a universal limit of €10,000 for cash transactions, in line with EU efforts to curb money laundering and illicit financial flows.

The Unit for Combating Money Laundering (MOKAS), the Central Bank of Cyprus, the Tax Department, the Cyprus Bar Association, the Cyprus Securities and Exchange Commission (CySEC), and the Legal Service have all expressed strong opposition to the bill. MOKAS alone reported 182 suspicious transaction reports from casino operators over the past two years—16 of which were forwarded to the police, yet only one has led to an investigation.

Despite this, the Finance Ministry, Deputy Ministry of Tourism, and Cyprus Gaming and Casino Supervision Authority support the exemption, arguing that the casino sector is already heavily regulated and suffers from “unfair competition” with foreign markets.

Astonishingly, industry representatives told Parliament that 94% of all casino transactions in Cyprus are conducted in cash, amounting to €32 million each month. Many high-rolling customers, particularly from Israel and Arab countries, allegedly prefer cash to avoid taxation or scrutiny in their home countries.

Even more troubling are reports that large sums of undeclared cash flow from casinos in the occupied territories through checkpoints into the Republic. These funds are often exported abroad based on casino-issued “winnings” certificates—documents that are accepted by customs with no verification.

The proposal has drawn condemnation from AKEL, Volt Cyprus, the Greens, and other independent MPs, who argue that it undermines the rule of law and creates unfair advantages for a single industry. “Why should casinos be exempt from rules that apply to every other sector?” asked the Greens, labeling the exemption “a moral and institutional collapse.”

MP Irini Charalambidou of AKEL blasted the government’s duplicity. “They call the FBI to fight money laundering, yet push legislation that opens the door through the back,” she said on social media. She accused the coalition of rushing the process by forcing all party positions to be finalized in a single committee session—something she called “unprecedented.”

Adding to the irony, EU regulations mandating cash transaction caps—including for casinos—are set to come into force across the Union by July 2027. “We’re bending backwards for two years of favors, just to walk back the same law under EU pressure,” she said.

MP Alexandra Attalidou of Volt Cyprus described this situation as “closing one loophole to open floodgates,” accusing the government of enabling cross-border tax evasion and aiding foreign nationals in dodging obligations to their own governments. “Are we a legitimate state, or a playground for dirty money?” she asked in Parliament.

As things stand, AKEL, the Greens, and Volt will vote against the proposal. DIKO, DIPA, and Themistokleous are firmly in favor. DISY’s position will be decisive: while MP Efthymios Diplaros is one of the bill’s sponsors, others within the party appear unconvinced.

The votes of EDEK and ELAM also remain uncertain, but all eyes are on DISY, whose internal split could make or break the proposal.