President of Cyprus Withdraws Cash Transaction Limit Law

The president of the Republic of Cyprus, Nikos Christodoulides, has returned to parliament a law passed two weeks ago, which made transactions involving liquid assets over 10,000 euros illegal. The president refused to sign the law, citing an error in the text of the bill approved by the plenary of the House of Representatives.

The text refers to the fact that the law is based on EU Regulation 2024/1624 – “On the Prevention of the Use of the Financial System for the Purposes of Money Laundering or Terrorist Financing.”

However, the president pointed out that the EU regulation introduces a cash transaction limit starting from July 10, 2027. In contrast, the law passed by the Cypriot parliament was set to come into force immediately upon publication.

Therefore, the president is recommending that parliament amend the text by removing the reference to the law being based on the EU regulation.

Although parliament is currently officially on recess, the House Ethics Committee will convene for an extraordinary meeting next Monday to discuss the bill returned by the president. The Attorney General and the Minister of Finance have been called to attend the meeting.

It should be noted that the law in question was passed on December 5. According to the decision, transactions over 10,000 euros involving liquid assets, including cash, are illegal and subject to fines or imprisonment.

Such transactions include not only the purchase of goods and services but also the sale of real estate.