Proposed casino cash exemption in Cyprus sparks money laundering concerns

A proposed bill that looks to exempt casinos from Cyprus’ €10,000 cash transaction cap has been met with strong opposition, as critics warn it could be counterproductive against anti-money laundering efforts.

The timing of the proposal has also raised eyebrows, as tighter EU regulations on casino cash flow are set to take effect in 2027.

Criticism and money laundering concerns

During a CyBC radio interview, Volt MP Alexandra Attalides openly opposed the bill, accusing lawmakers of enabling money laundering.

In this interview, she specifically highlighted the millions of euros in unmonitored cash transactions making their way through Cyprus.

She also suggested that it wouldn’t be great for the country to get another reputational hit after previous money-laundering scandals.

Attalides referenced a recent case where a Ukrainian woman was caught carrying €300,000 in undeclared cash, reinforcing concerns that large sums of money are circulating with little oversight.

According to her, checks at private airports, marinas, and ports are almost nonexistent, leaving authorities in the dark about the true origin of these funds, leaving criminals to roam freely with aforementioned cash.

The casino loophole and the northern Cyprus connection

One major loophole highlighted in the debate involves players from Israel, a country that taxes casino winnings at 35%.

What happens is that many gamblers cross into southern Cyprus after winning money at casinos in the north, providing only a self-issued declaration stating their funds came from gambling.

“This effectively turns Cyprus into a money-laundering corridor for the north,” Attalides argued, noting that some players prefer cash transactions to bypass financial scrutiny or for religious reasons.

Opposition from regulatory and financial authorities

The bill, introduced by MPs Nikolas Papadopoulos (Diko), Marinos Moussouttas (Dipa), Efthimios Diplaros (Disy), and Independent Andreas Themistokleous, has met firm resistance from financial and regulatory institutions.

The Finance Ministry, the Tax Commissioner, the Anti-Money Laundering Unit (MOKAS), the Cyprus Bar Association, and the Central Bank have conveyed that they are against the exemption, warning of its potential consequences.

A representative from the Legal Service emphasized that any exception to the cash cap must align with legal principles of fairness and proportionality, questioning whether casinos face a greater economic burden than other businesses affected by the restriction.

Casinos argue competitive disadvantage

Supporters of the exemption argue that strict cash limits are driving business away, putting casinos in the south at a disadvantage compared to those operating outside Cyprus’ jurisdiction, particularly in northern Cyprus.

The Cyprus Gaming Authority defended the industry, insisting that strict monitoring measures are already in place.

According to its data, casinos process around 40,000 transactions per month, totaling €32 million, with 94% of transactions occurring in cash.

The post Proposed casino cash exemption in Cyprus sparks money laundering concerns appeared first on ReadWrite.