Commerce Ministry announces ammendments to regulations on brokering activities involving arms

The Ministry of Energy, Commerce and Industry has announced the implementation of Regulations 112/2024 on the export, brokering and technical assistance of military equipment.

According to a press release, the aforementioned Regulations amend Regulations 2 and 4 of Regulations 522/2011 and were issued on the basis of article 2.1 of “Common Position 2003/468/CFSP of the Council of the European Union of 23 June 2003 on the control of arms brokering, pursuant to Article 21 of Law 1(I)/2011.

As noted, the purpose of the amendment of the Regulations is to place brokering activities involving arms and military equipment transferred from a third country to another third country (a country that is not a member state of the European Union), under a licensing regime, even if the broker arranges the transfer while he/she is outside the territory of the Republic of Cyprus.

Moreover, it is clarified that all brokering activities carried out by legal persons, even if they do not have staff in Cyprus, as well as by cooperatives, are also subject to a licensing regime.

As the Ministry notes, all such licenses are issued by the Strategic Items Export Licensing Section of the Ministry of Energy, Commerce and Industry. Applications are submitted through the Stratlink electronic system https://stratlink.meci.gov.cy/, which can be found on the website of the Ministry’s Trade Service.

A broker who carries out brokering activities without the necessary license is deemed guilty of an offense in accordance with articles 14-20 of Part IV (Sanctions-Criminal Provisions) of Law 1(I)/2011. More specifically, in the event of a violation of the Law and/or the Regulations, a natural or legal person is deemed guilty of an offense and in case of conviction, is subject to imprisonment not exceeding three (3) years and/or a fine not exceeding one hundred thousand euro (€100,000) or both of these penalties.

(Source: CNA)