European Commission rebukes Cyprus over money laundering

The EU Commission on Wednesday sent a reasoned opinion to Cyprus for failing to correctly incorporate EU legislation that covers money laundering and financial interests.

An announcement details that Cyprus, along with Greece, failed to correctly transpose the Directive on the fight against fraud to the EU’s financial interests by means of criminal law.

The rules behind the law increase the level of protection of the EU budget by harmonising the definitions, sanctions and limitation periods of criminal offences affecting the union’s financial interest.

They also lay out the foundation for the European Public Prosecutor’s Office (EPPO).

Nonetheless, the commission said it first sent a letter of formal notice to Cyprus in February 2022. After analysing the replies, it concluded that Cyprus “failed to fully transpose some provisions on the definition and the liability of legal persons”.

Additionally, Cyprus also failed to incorporate provisions on its jurisdiction “over the offence of money laundering”.

As such, Cyprus and Greece have received a reasoned opinion to which they now have two months to respond.

A reasoned opinion is a formal request to comply with EU law. It explains why the commission considers that the country is breaching EU law. It also requests that the country inform the commission of the measures taken, within a specified period, usually two months.

If the country still does not comply, the commission may decide to refer the matter to the EU Court of Justice.