The Parliament of Cyprus has approved an exemption that removes the €10,000 cap on physical currency payments for gambling venues, despite concerns about its possible impact on financial transparency and the country’s compliance with European standards.
About the Amendment
The reform was accepted after a poll in the House of Representatives.
The results were the following:
- 25 members of the Parliament (MPs) voted in favour;
- 17 against;
- 1 abstention.
The cash cap was initially introduced in December 2023 as part of efforts to follow anti-money laundering rules set by European institutions. Under the law at that time, all non-electronic transactions above €10,000 were banned in order to prevent suspicious financial activity. The new amendment cancels that restriction for specific businesses, causing sharp disagreement among lawmakers.
Comments from Proponents
Among political parties supporting the reform are:
- Diko;
- Disy;
- Dipa.
Supporters of the amendment argued that the previous cash limit harmed the legal economy by pushing wealthy visitors away from the Republic and towards the northern part of the island, where no such restrictions exist. They claimed that high-spending tourists prefer to use physical currency and that refusing these settlements meant losing significant income to the unregulated side of Cyprus.
Diko’s leader, Nicholas Papadopoulos, speaking during the debate, explained that people with large amounts of money are likely to go where their spending habits are allowed. He insisted that removing the cash cap would benefit legal operations and strengthen the Republic’s economy by attracting more solvent visitors and encouraging them to spend within the country’s controlled environment.
Those in favour of the change maintained that the amendment would protect the interests of regulated venues and help boost national revenue by keeping tourist money within the legal sector. These MPs viewed the exemption as a practical solution to an economic problem, especially in a competitive regional environment.
Opposing Parties' Comments
However, the decision was met with serious resistance from other political groups and independent lawmakers.
Among the parties and members that opposed the change are:
- Akel;
- the Greens;
- an independent MP, Alexandra Attalides.
They voiced concerns about the risk of pecuniary abuse and the message the amendment might send to international observers.
Ms Attalides warned that allowing certain venues to operate without the cash limit could open the door to questionable transactions and weaken Cyprus’s reputation in the eyes of European fiscal regulators. She pointed out that such businesses are often flagged as high-risk under existing anti-money laundering rules and should be monitored closely rather than granted exceptions.
Opponents of the measure expressed fear that the new law might create a loophole that could later be exploited, leading to increased scrutiny from European authorities. They argued that monetary clarity should not be compromised for the sake of attracting a small group of wealthy visitors, especially when the country is still under observation for past failings in fiscal oversight.
Under the new arrangement, foreign guests who bring large sums of cash into Cyprus for entertainment-related spending will be required to declare the money upon arrival. Businesses receiving these payments must also ask for proof of this document before accepting any significant amounts. This condition is meant to provide control and help prevent misuse of the amendment.
Government officials say the change will help legal businesses grow. However, critics worry that it could lead to serious consequences, including possible increased scrutiny by the European Union in the future.
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