The government on Thursday got the green light from parliament to establish a national financial sanctions unit, part of the island’s commitments as an EU member-state.

The relevant government bills passed with a majority vote at the House plenum.

Cyprus had to enact the legislation so as to harmonise with relevant EU law. It had already missed the deadline, which was May 20.

Other than setting up a national sanctions unit – a separate division within the finance ministry – the government bills passed on Thursday also criminalise sanctions-busting, and grant the unit the authority to slap fines on entities not disclosing the information requested.

Effectively the unit will supervise and coordinate all matters relating to the implementation of financial sanctions issued by the EU and the United Nations Security Council.

It will further issue directives, clarifications and guidance to all relevant departments and agencies.

And it will direct the tracking and freezing of financial assets that are subject to sanctions.

The legislation moreover makes it mandatory to share information with counterpart agencies overseas.

It also provides protection to whistleblowers.

Diko MP Christiana Erotokritou welcomed the passage of the legislation. She noted that up until now Cyprus had been “the weak link” in international sanctions-busting efforts.

However some MPs pointed to flaws in the legislation and in the future operation of the national sanctions unit.

Independent MP Costas Efstathiou said the law provides for no recourse or process for individuals wrongly deemed to be in violations of sanctions-busting.