The House of Representatives will debate on Thursday, March 27, an urgent bill seeking to exempt casinos from cash transaction restrictions above €10,000. This decision was made during today's session of the Parliamentary Committee on Institutions.

The bill was introduced by MPs Nikolas Papadopoulos (DIKO), Marinos Moushouttas (DIPA), Efthymios Diplaros (DISY), and Andreas Themistokleous (independent, former ELAM MP). During the committee session, different preambles were presented to justify the exemption of casinos from the legislation enacted last December. In addition to the bill's proponents, the Ministry of Finance also submitted a preamble.

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

Besides the bill's sponsors, those in favor of its urgent promotion included Committee Chairman and DISY MP Dimitris Dimitriou, DISY MP Nikos Georgiou, and DIKO MP Zacharias Koulias.

Opposing the bill were AKEL MPs Irini Charalambidou and Andreas Pasiourtides, as well as independent MP Alexandra Attalidou. Charalambidou strongly objected to interruptions during her remarks and those of Attalidou by Andreas Themistokleous, one of the bill's sponsors. Following what she described as an "inappropriate comment," Charalambidou left the session in protest.

"They cannot silence us in Parliament," Charalambidou stated, adding that Cyprus had lost political credibility internationally due to past policy failures. She argued that instead of aligning fully with international practices, some MPs were pushing for a law opposed by supervisory and regulatory authorities.

During the session, Charalambidou read a message from the Tax Commissioner, who had expressed his willingness to participate in the debate if he were not away on business in Brussels. In the message, the Commissioner clarified his firm opposition to raising the €10,000 cash transaction limit—not only for casinos but for all activities—stating that excessive cash flow facilitates tax evasion and money laundering. He had requested that this position be conveyed to the committee, which Charalambidou criticized for failing to do so.

Charalambidou also noted that several regulatory bodies, including the Unit for Combating Money Laundering (MOKAS), the Legal Service, the Cyprus Bar Association, and the Central Bank, had expressed opposition to the bill. She questioned why certain parties were pushing for a legislative change that would become obsolete by July 10, 2027, when an EU regulation limiting cash transactions takes effect.

In response to a question from Pasiourtides, the Legal Service's representative explained that any exemption from cash transaction limits must be justified based on the principles of equality and proportionality. However, the service was not in a position to assess whether other economic entities affected by the restriction faced similar financial consequences as casinos—an evaluation that should have been conducted by the bill’s sponsors.

Themistokleous and Koulias supported the preamble presented by Moushouttas, which argued that the immediate imposition of cash transaction limits would place the casino at a competitive disadvantage compared to casinos operating outside the jurisdiction of the Republic of Cyprus. It also claimed that the restrictions would disproportionately impact casinos compared to other regulated entities in Cyprus.

During the committee’s previous session on March 5, the Cyprus Bar Association’s Committee on Anti-Money Laundering raised concerns over unequal treatment under the law if an exemption were granted to casinos but not to other businesses, citing Article 28 of the Constitution.

The Cyprus Gaming and Casino Supervision Authority reassured MPs that it conducts regular and thorough audits to prevent money laundering risks associated with large cash transactions. The casino’s management had previously stated that out of 40,000 monthly transactions totaling €32 million, 94% were conducted in cash.

When asked by Pasiourtides why casino patrons would prefer cash transactions over bank card payments if all transactions were legitimate, the Gaming Authority cited "cultural preferences." Many players prefer cash to avoid having casino winnings appear in their bank records. The authority also noted that in some countries, such as Israel, casino winnings are subject to high taxation, which influences patrons' preference for cash transactions.

VOLT MP Alexandra Attalidou expressed alarm over the claim that Israeli citizens use Cyprus casinos to evade a 35% tax on gambling winnings in their country. "Are we enabling foreign nationals to deceive their own government?" she asked. She stressed that as an EU member state, Cyprus must adhere to financial regulations rather than circumvent them for economic gain.

Attalidou also criticized the loophole allowing individuals to withdraw money from the Republic of Cyprus using a winnings certificate from casinos operating in the occupied territories. She called on the Ministry of Finance to review customs procedures and introduce stricter regulations.

Firmly opposing the bill, Attalidou warned, "We are closing one loophole, only to open floodgates." She reiterated that Cyprus has long been targeted as a money laundering hub for criminals and fraudsters, adding that she would not support any measure that further damages the country’s reputation.

She also emphasized that MOKAS, the Tax Commissioner, the Central Bank, the Cyprus Bar Association, and the Cyprus Securities and Exchange Commission have all opposed exempting casinos from cash transaction restrictions.