A bill to exempt casinos from the restriction limiting cash transactions to €10,000 has been the subject of heated debate while opponents on Thursday lambasted the proposal as a last ditch “money-grabbing attempt”, before the European Union itself imposes stricter regulation on casino takings in 2027.

Speaking on CyBC’s morning radio Volt MP Alexandra Attalides positioned herself explicitly against the exemption saying it amounted to collaboration with money launderers.

Millions of euros had passed though Cyprus undeclared, Attalides said, pointing out that Cyprus could not afford another blow to its credibility in the wake of efforts to shake off its reputation as a money-laundering haven.

“The very reason the [cash restriction] was passed by Parliament in December is because we discovered that millions in cash pass through the airports,” the MP said, referencing the massive money laundering case which started with the arrest of a Ukrainian woman found with €300,000 in cash last year.

MPs had since discovered that almost no checks were conducted on private aircrafts and vessels, and at marinas and ports, Attalides said.

“We have no idea if this money was going towards [illegal] property usurpation [or property purchases in the south] or being laundered,” she added.

The MP went on to describe how individuals who gamble in the north, most coming from Israel – which imposes a high tax of 35 per cent on casino takings – can freely pass to the south simply by showing a declaration that any cash amount they are transporting comes from casino takings.

“So we are essentially collaborating with money laundering in the north,” Attalides said, adding that other third-country gamblers declare they prefer cash so as to avoid compromising their religious standing.

In 2024, €667,000 had been declared by the Customs Department as cash checked, and intended to be played at casinos, but the casinos themselves had declared around €150 million as having been played.

“Where is all this money going? Why wasn’t it declared?” the MP asked.

The proposal to exempt casinos “which should never have been submitted” according to Attalides, was tabled by MPs Nikolas Papadopoulos (Diko), Marinos Moussouttas (Dipa), Efthimios Diplaros (Disy) and Independent Andreas Themistokleous at Wednesday’s House committee meeting.

In addition to the bill’s proponents, the finance ministry also presented a preamble. The tax commissioner, the anti-money laundering unit (Mokas), the legal service, the Cyprus bar association, and the central bank positioned themselves against the proposal.

In the course of the proceedings the legal service explained that any exception to the restriction on cash transactions could only be argued on the basis of the principle of equality and proportionality.

“The legal service is not able to assess whether other economic entities whose activities are affected by the restriction have similar economic impacts to those of the casino,” he said.

Proponents had argued that the imposition of limits placed casinos in the south at a competitive disadvantage in relation to casinos operating “outside the jurisdiction and control of the Republic of Cyprus”.

The Cyprus gaming authority, for its part, had assured that regular and continuous controls were being carried out. It had reported on March 5 that 40,000 transactions are made monthly, totalling 32 million euros, 94 per cent of which are made in cash.