Plenary accepts presidential referral of law on cash transactions for goods/services

08:38 - 24 December 2024

Economy

The House has accepted the President’s referral of a law limiting large cash transactions for goods and services, in an extraordinary session.

The House Institutions Committee met before the Plenary in the presence of a representative of the Law Office.

The legislation was passed in December and aimed to adopt provisions of an EU Regulation regarding the prevention of financial system abuse for money laundering or terrorist financing. The law would cap cash payments for goods and services at €10,000 or its equivalent in national or foreign currency.

The referral was accepted with 33 votes in favour and one abstention by ELAM MP Soteris Ioannou.

DISY MP Demetris Demetriou who originally proposed the legislation said that the reason for the referral was a legal technical issue and was rightly referred to, since a relevant European regulation is set to be implemented in 2027.

He also said that for the first time, Cyprus may be proceeding with the implementation of a European regulation before its implementation in the EU.

The President’s referral says that EU Regulation 2024/1624 will be introduced as of 10 July 2027, and therefore the statement that the law which was passed by the House is in implementation of the provisions of the specific regulation, implies its non-direct application.

Therefore, it is added that the setting of a limit for payments in cash above 10,000 euros in application of the provisions of Regulation (EU) 2024/1624 requires correction to remove the phrase “in application of the provisions of Regulation 2024/1624”.

Plenary accepts presidential referral of law on cash transactions for goods/services

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