Cash transactions exceeding €10,000 are now prohibited under a law passed by the Cypriot parliament on Thursday. The legislation, proposed by Disy MP Demetris Demetriou, introduces penalties that include fines and potential prison sentences for violations.
The new law imposes a fine of up to 10% of the amount transacted in cash when the value exceeds €10,000 or its equivalent in another currency. These restrictions apply to transactions involving goods, services, and real estate. For real estate deals, violators may face additional penalties, including imprisonment for up to five years.
The law defines “liquid assets” as cash, transferable securities, commodities with high liquidity, and prepaid cards. The aim of this regulation is to strengthen measures against money laundering and the financing of terrorism.
An exception is included for cases where liquid assets, excluding coins and banknotes, are inaccessible due to force majeure.
During the parliamentary debate, Demetriou referenced a recent case of a Ukrainian woman entering Cyprus with €400,000 in cash. He also highlighted reports showing that €120 million in cash had passed through customs over the last three and a half years, with no governmental body able to trace the funds.
The legislation was approved by 24 votes in favor and two against. However, some MPs raised concerns. Disy’s Marios Mavrides questioned the fairness of penalizing individuals for transactions involving legitimate money.
Source: Cyprus Mail