Casinos in Cyprus: strong opposition to proposed exemption on cash limits
A bill that would exempt casinos from a limit on cash transactions is facing opposition amid money laundering concerns.
Cyprus.- Fierce debate has begun on a bill that would exempt casinos in Cyprus from a restriction that limits cash transactions in the republic to €10,000. Proponents argue that cash limits put casinos in the south of Cyprus at a competitive disadvantage in comparison to those in the north of the island that operate outside of the Republic of Cyprus’s control. But opponents say the proposed exemption is a “money-grabbing attempt” ahead of the imposition of new European Union anti-money laundering regulations in 2027.
The proposal to exempt casinos from the cash restriction was tabled by MPs Nikolas Papadopoulos (Diko), Marinos Moussouttas (Dipa), Efthimios Diplaros (Disy) and the independent Andreas Themistokleous at a House committee meeting on Wednesday. The finance ministry presented a preamble, but the tax commissioner, the anti-money laundering unit Mokas, the legal service, the Cyprus bar association and the central bank have all expressed opposition to the proposal.
According to Cyprus Mail, Volt MP Alexandra Attalides told CyBC radio that the bill would harm the island’s reputation. “We are essentially collaborating with money laundering in the north,” she said.
She noted that the reason for parliamentary approval of the cash limits in December was the discovery that millions in cash were passing through the territory, referring to a high-profile money laundering case that saw the arrest of a Ukrainian woman carrying €300,000 in cash last year. The MP said it was discovered that almost no checks were done on private aircraft or on vessels at marinas and ports.
She added: “We have no idea if this money was going towards property usurpation or being laundered.”
The MP said that most people who gamble in casinos in the north of the island come from Israel, which imposes a tax rate of 35 per cent on casino takings. Some gamblers say they prefer cash to avoid being found to have compromised their purported religion. She said they could freely pass to the South by showing a declaration that any cash comes from casinos.
Attalides said that in 2024, the Customs Department declared having checked €667,000 in cash for gambling at casinos in Cyprus, but casinos themselves declared cash bets of around €150m. “Where is all this money going? Why wasn’t it declared”, the MP asked.
The legal service said that any exception to the restriction on cash transactions could only be defended on the grounds of the principle of equality and proportionality. “The legal service is not able to assess whether other economic entities whose activities are affected by the restriction have similar economic impacts to those of the casino,” it said.
The Cyprus Gaming and Casino Supervision Commission has insisted that it conducts regular controls. It reported on March 5 that out of 40,000 transactions a month totalling €32m, 94 per cent of which are made in cash.
Last year, Cyprus launched a gambling self-exclusion platform. At the start of the year, police in Cyprus reported six arrests in a raid targeting illegal gambling at a cafe in Paphos.
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