By Evie Andreou
The House legal affairs committee on Wednesday launched discussions on setting a €10,000-ceiling for the cash purchase of vehicles, precious stones and metals, works of art and antiques.
The ban on cash sales for items more than €10,000 is aimed at harmonising national legislation with the EU Directive on restrictions on payments in cash. Each member state is allowed to decide on which products it wants to impose the ceiling.
Head of the committee, Giorgos Georgiou, said that the provision in question is included in the bill on the prevention and combating of money laundering. The €10,000 limit is in line with anti-money-laundering norms and amounts of €10,000 or over are flagged when it comes to single deposits or bank transfers for this amount on the grounds the money could have come from drug dealing or other illegal activities.
Georgiou said the state’s legal services, by way of amendment, proposes limiting the ban to the purchase of vehicles, precious stones and metals, works of art and antiques.
The European directive, Georgiou said, refers to the fight against money laundering and terrorism financing. This, he said, also includes persons who trade goods where the sum paid or received in cash exceeds €10,000, in one or more transactions.
The national bill, Georgiou said, determines the execution of transactions for various goods up to a maximum of 10,000 in cash. However, reference to goods may include anything, he said, so the unit for combating money laundering, Mokas, tabled an amendment which specifies transactions for the purchase of goods, which may involve the risk of money laundering.
“One would not be able to buy in cash a car worth more than €10,000, or buy art, precious metals, or jewellery,” he said.
Discussion of the bill will continue in the next few weeks with the aim of tabling it to the House plenum to vote next month as the government is under pressure by the EU to see national law being harmonised with the directive.
On whether it included cash in property transactions, Georgiou said: “Is there anyone who could give half a million in cash to buy property?”
He said that the proposal of the legal services on the goods in question would be further discussed as objections were raised.
AKEL MP Aristos Damianou expressed concerns over a number of issues that needed to be clarified.
Damianou said that there were many other goods that could be bought in an attempt to launder money and that 16 other member states had a complete, generalised ban on cash payments of a certain amount.
He also expressed concerns as to whether the list of goods was the result of lobbying that led to the exclusion of other products. “We want equal treatment for all citizens and all companies. So, if some products are more prone [to money laundering] than others, we need to see what these are. But to target some and exclude hundreds of others, you realise this is not fair and we will look at it with all the goodwill necessary for these issues,” he said.
He added that the €10,000-ceiling was also open for discussion.
17 Comments
kullike
February 15, 2018 at 12:14what stops me to pay the cash in installments which will be over 10.000 in total.
Mike
February 15, 2018 at 10:06Sadly those who use illicit cash will always find a way of circumventing the rules. Traceability and accountability are worthwhile to protect us all. I paid cash for my new pick up but it was from traceable accounts and perfectly legal and above board. Assuming we have nothing to hide then surely we have nothing to fear. As for the privacy argument then I suggest in this digital age there is no such thing despite what ever rhetoric is spouted. I suggest there are algorithms out there that know more about us than we know ourselves. Before anyone suggests it I do not have a cheque book or card as I refuse to pay for the privilidge.
cyprus observer
February 14, 2018 at 21:02Correct decision. Nobody needs to buy items for more tham 10,000 euros without going through proper financial accounting procedures..like a bank transfer. If you have a surplus of cash like that, it’s 95% certain it has come via unorthodox (ie non declared and non taxable) means.
John Henry
February 14, 2018 at 22:33Your a fascist pig and an idiot although they are the same. Your pig government robbed you in 2013, leaving us to withdraw a large amount and protect it our own way. If I decide to by a car with cash, you expect me to deposit it, paying the bank for nothing, then purchase the car? Moron. Take Cyprus out of your stage name, you’re an insult to my lovely wife!
JS Gost
February 15, 2018 at 08:27Your first sentence negated anything worthwhile you may have said. Did not even bother reading the rest of the comment. This is a discussion form, discuss.
Steamkettle
February 16, 2018 at 14:38JS – given his hysterical post you can’t help wondering why he’s so angry. One reason does spring to mind…..
thraex
February 14, 2018 at 20:49seriously? you’re advocating for even more control by governments over our money? go ahead then, hand it over to them on a platter. it’s not about hiding anything, it’s about privacy, there’s a distinction which if you can’t see that’s your problem. if you’ve got nothing to hide, then install cameras in your bathroom and bedroom and live-stream it 24/7. after all, you got nothing to hide, right?
Victor Lazlo
February 14, 2018 at 21:37Well said. If someone wants to do something illegal they will. This rule will not stop them, it will just increase so-called compliance for the rest of us. I’ve lost count of the times I have to provide certified copies of passports, electricity bills etc. If I recall, it is the bank’s who are the biggest criminals, not their customers.
Evergreen
February 14, 2018 at 18:56It should be less than even this limit.
Veritas
February 14, 2018 at 19:28Fully agree. Big cash payments is an obsolete method, unless you want to hide something.
Evergreen
February 14, 2018 at 19:46Thank you😊
Yes transaction in cash is an outdated mode. Risky and prone to tax avoidance also.
Costas
February 14, 2018 at 20:32ok Slomi
Colin Evans
February 15, 2018 at 10:06Not always the case. Last Monday I closed a number of Bank of Cyprus accounts and requested a cheque for each. The answer was that will be 15.00 Euro per cheque, or you can have cash. Which do you think I did?
Veritas
February 15, 2018 at 12:47I’m fully aware of the fact, that there are cases, like yours, that will justify handling a bigger amount of cash then normal.
I was referring to different scenarios.
Arnt Otto Østlie
February 14, 2018 at 19:32Maybe so; it should also include property transactions.
Evergreen
February 14, 2018 at 19:46Yes.
JS Gost
February 14, 2018 at 18:46Cash is king in Cyprus and always will be. Untraceable, nontaxable and illicitly gained. Europe, who are they ?