Cyprus parliament approves casino exemption from cash transaction limit despite money laundering concerns

Cyprus casinos will no longer be subject to the country’s €10,000 ($10,942) cash transaction cap, following a vote in the House of Representatives on Thursday evening. The controversial amendment passed with 25 votes in favor, 17 against, and one abstention.

The exemption rolls back part of a restriction introduced in December 2023, which limited all cash transactions to €10,000 as an effort to align with anti-money laundering (AML) regulations. Lawmakers who supported the casino carve-out argued that the cap was pushing high-stakes gamblers to the northern part of the island, where such limits do not apply.

“Whether we like it or not, high rollers prefer cash transactions. If we don’t allow it, they will take their money elsewhere,” said Diko party leader Nicholas Papadopoulos during the parliamentary debate. He added that allowing cash payments at casinos would strengthen the Republic’s economy, particularly the legal gambling sector, rather than benefit competing venues across the Green Line.

Members of Diko, Disy, and Dipa backed the change, asserting it would help retain high-value tourists and bolster revenues in the country’s regulated casino industry.

However, opposition parties and independent lawmakers voiced strong concerns. Akel, the Greens, and independent MP Alexandra Attalides voted against the amendment, citing potential risks to financial transparency and the country’s international standing.

“We are opening a dangerous loophole that could come back to haunt us,” Attalides warned, adding that such exemptions contradict the standards upheld by European financial regulators. She stressed that casinos are typically flagged as high-risk entities under AML frameworks and should remain under strict scrutiny.

Under the revised legislation, visitors bringing large amounts of cash into Cyprus for gambling purposes must declare the funds upon entry. Casinos will be obligated to request proof of this declaration before accepting any high-value payments.

While the government claims the measure will encourage greater economic activity within the legal gambling sector, critics fear it could attract regulatory action from the European Union.