Τhe House of Representatives has approved a revised law limiting cash transactions to €10,000 following its referral back to parliament by President Christodoulides.
The referral was accepted with 33 votes in favour and one abstention from ELAM MP Sotiris Ioannou. The new law subsequently passed with 29 votes in favour and three against.
DISY MP Demetris Demetriou, who introduced the bill, said the referral was due to a technical legal issue and was justified, as the relevant EU regulation would not come into effect until 2027. He noted that Cyprus might be the first country to implement such regulations ahead of their EU-wide application.
The legislation aims to adopt provisions from EU regulation 2024/1624 regarding the prevention of using the financial system for money laundering or terrorist financing. Under these provisions, individuals trading goods or providing services may only receive or make cash payments up to €10,000 or its equivalent in national or foreign currency.
The presidential referral highlighted that EU Regulation 2024/1624 takes effect from 10 July 2027, and therefore the reference to the law being an implementation of this regulation’s provisions would prevent its immediate application.
The referral indicated that the €10,000 cash payment limit needed amendment to remove the phrase “in implementation of the provisions of Regulation 2024/1624”.
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