In December 2024, the Cypriot Parliament passed legislation prohibiting cash transactions exceeding €10,000 as part of its efforts to combat money laundering and financial crimes. This law, effective from 1 January 2025, applies to various transactions, including those related to goods, services, and real estate. Violations could lead to fines amounting to 10% of the transaction or, in some cases, imprisonment.
However, a legislative proposal emerged seeking to exempt casinos from this cash transaction cap. Proponents argue that casinos operate with high cash volumes, and enforcing such restrictions could disrupt operations. Additionally, concerns were raised that stringent cash limits might drive patrons to casinos in the northern part of Cyprus, which lack similar regulations. The Cyprus Gaming and Casino Supervision Commission assured that even with an exemption, anti-money laundering (AML) controls would remain robust, including Know Your Customer (KYC) checks for transactions exceeding €2,000.
Despite these arguments, the parliamentary session to discuss the exemption has been postponed amid significant opposition. Key regulatory institutions, including the Central Bank of Cyprus, the Tax Commissioner, the Unit for Combating Money Laundering (MOKAS), and the Cyprus Securities and Exchange Commission, have voiced strong concerns. They warn that lifting the cash limit for casinos could increase money laundering risks and damage the country’s financial reputation.
On the other hand, the Ministry of Finance and the Deputy Ministry of Tourism support the exemption, noting that 94% of casino transactions are conducted in cash. They argue that the new restrictions have adversely affected casino operations and that a transitional period until 2027 would allow the industry to adjust gradually.
The debate over casino cash limits highlights a broader challenge, balancing economic interests with financial crime prevention. While the government aims to strengthen its AML framework, the casino industry argues that strict cash limits harm business operations. The final decision will significantly impact Cyprus’s regulatory stance and international reputation, making it a crucial issue for policymakers to resolve carefully.
We will continue to monitor developments on this issue as discussions progress and further decisions are made.
For more information, please contact us at info@compliancemk.com.
