A legislative proposal submitted by four Cypriot MPs—Efthymios Diplaros (DISY), Nikolas Papadopoulos (DIKO), Marinos Mousiouttas (DIPA), and Andreas Themistokleous (Independent, former ELAM MP)—has sparked concerns over potential backtracking in anti-money laundering (AML) efforts. The proposal seeks to remove the €10,000 cash transaction cap for customers of casinos, resort casinos, and satellite casinos.

Just two months ago, Parliament passed a law—introduced by MP Dimitris Dimitriou—establishing a universal cash transaction limit of €10,000 or its equivalent in foreign currency. The law, enacted on December 5, 2024, aligns with European regulations aimed at combating illicit cash flows.

The proposed amendment aims to exempt casinos from the €10,000 cash limit. According to its proponents, the exemption is essential for the smooth operation of casinos, as they are already regulated under the Casino Operations and Control Law and further supervised by the Cyprus Gaming and Casino Supervision Authority. Additionally, they argue that foreign casinos do not face similar restrictions, placing Cypriot casinos at a competitive disadvantage.

However, the proposal could endanger Cyprus' AML efforts, as it raises several concerns. Critics warn that it weakens recent anti-money laundering measures, undermining efforts to limit large-scale cash transactions. They also highlight transparency risks, as large sums of cash would become harder to trace, increasing the potential for money laundering. Furthermore, the amendment contradicts European directives aimed at curbing illicit financial flows and terrorist financing, at a time when Cyprus is striving to restore its international reputation as a financial hub.

It should be noted that Cyprus has frequently faced international scrutiny over money laundering allegations, with ongoing pressure to strengthen its regulatory framework.