A proposal to limit cash transactions for goods and services to €10,000 was discussed Wednesday by the House Institutions Committee.
The proposed amendment to the Prevention and Combating of Money Laundering Activities law comes in response to recent incidents, including a case where a Ukrainian national was caught carrying €400,000 in luggage. Investigations revealed that over €120 million in cash had passed through Cyprus airports and circulated in the market over the past three years.
The proposal, which would implement EU Regulation 2024/1624 three years ahead of schedule, received support from key institutions including the Tax Commissioner, Law Office, Police, Customs Department, Central Bank of Cyprus, Cyprus Securities and Exchange Commission, Association of Cyprus Banks, and the Institute of Certified Public Accountants of Cyprus.
Tax Commissioner Sotiris Markides suggested gradually reducing the limit to €5,000 and considering prison sentences in addition to existing fines of 10% on amounts exceeding €10,000. He emphasised that cash transactions are often used for tax evasion and money laundering.
Independent MP Alexandra Attalides backed the proposal, supporting both the suggested €5,000 limit reduction and increased penalties. She noted that international anti-money laundering investigations typically focus on real estate, luxury goods, and artwork.
However, DIKO MP Zacharias Koulias expressed reservations, arguing the measure would primarily benefit banks. He called for exemptions for agricultural sector workers and raised concerns about high bank transaction fees.
The committee will continue discussions with additional stakeholders, including the Ministry of Finance, to ensure alignment with EU regulations and proportionality principles.
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