An extraordinary session of the Cypriot Parliament was held on Monday 23 December.
The main topic of discussion was the law restricting cash transactions.
As a result of the vote, 29 deputies voted in favour of approving the amendments and only 3 deputies voted against.
Thus, despite the objections of the President of Cyprus, the law was passed. It is interesting that for the first time Cyprus is implementing the European regulation before it is applied in the EU.
It should be recalled that the new law prohibits the use of liquid assets for transactions exceeding 10,000 euros (or the equivalent in other currencies).
Liquid funds are defined as cash, securities, highly liquid assets and prepaid cards. Restrictions on transactions related to the purchase of goods, services and real estate. There are strict sanctions for violations of the law: fines of up to 10% of the amount of the transaction. In the case of real estate transactions, in addition to fines, the court may impose a prison sentence of up to five years.
The bill was initiated by DISY MP Dimitris Dimitriou.
According to him, the new measure is aimed at strengthening the fight against money laundering and terrorist financing. The law provides for exemption from legal proceedings if liquid assets (excluding coins and banknotes) disappear due to force majeure.