Cypriot President Nicos Christodoulidis has vetoed a new draft law prohibiting the use of cash for transactions exceeding €10,000 (or the equivalent in another currency).
The main reason is the incompatibility of the Cypriot version with EU Regulation 2024/1624. The latter will enter into force in July 2027, while the Cypriot law provides for immediate effect.
The President has recommended to the Parliament to remove this clause for the sake of correctness. Parliament is expected to convene an ethics committee next Monday to discuss the amendments without adjourning the matter. The Attorney General and the Minister of Finance will attend in person. MPs will then meet in plenary to take a final decision. It should be noted that this law regulates not only the purchase of goods and services, but also transactions involving real estate, cash, securities and prepaid cards.
Recall that at the beginning of December, the Cypriot Parliament adopted a law prohibiting transactions with money worth more than 10 thousand euros. Strict sanctions have been introduced for breaching the rules: fines of up to 10% of the transaction amount. In the case of property transactions, the court can impose a prison sentence of up to five years in addition to the fines.