EU opens three infringement cases against Cyprus over money laundering, tax and fraud rules

Economy euEuropean Unionmoney launderingTop News EU opens three infringement cases against Cyprus over money laundering, tax and fraud rules Eu Opens Three Infringement Cases Against Cyprus Over Money Laundering, Tax And Fraud Rules Relevant News EU opens three infringement cases against Cyprus over money laundering, tax and fraud rules 9 July 2026 Medicover Genetics showcases impact of research and innovation to EU Commission and Ministry of Finance 9 July 2026 Bonnie Tyler, Total Eclipse of the Heart singer, dies at 75 9 July 2026 Newsroom 9 July 2026 FacebookXWhatsAppEmailPrintViber The European Commission formally announced yesterday that it has opened infringement proceedings against Cyprus in three separate cases, over the country’s failure or delay in complying with EU directives and regulations relating to anti-money laundering rules, the exchange of tax information with the EU and member states, and the provision of banking transaction data to OLAF, the EU’s anti-fraud office. The Commission sent two letters of formal notice and one reasoned opinion, meaning Cyprus must now convince Brussels that it is prepared to amend its legislation within set deadlines in order to fully comply in all three cases where it has diverged from EU law. Where the problems were found The Commission’s observations concern the following: Incomplete implementation of the anti-money laundering directive The Commission sent a letter of formal notice over the incorrect transposition of certain provisions of the directive on combating money laundering. Cyprus is listed, along with Lithuania, Poland and Slovenia, among the member states that, according to the Commission, have not correctly transposed key provisions of Directive (EU) 2018/1673 into national law, particularly regarding money laundering offences, the penalties provided for, and the aggravating circumstances that carry harsher sentences. The directive establishes a common European framework defining money laundering offences and penalties, while strengthening police and judicial cooperation between member states and preventing criminal organisations from exploiting differences between national legal systems. According to the Commission, one of the directive’s key innovations is the ability to prosecute money laundering even without a prior conviction for the underlying offence that generated the illicit proceeds, as well as the ability to prosecute individuals who launder proceeds from their own criminal activities, known as self-laundering. Incomplete implementation of tax information exchange rules The Commission sent the Cypriot government a reasoned opinion over the incomplete transposition of the directive on administrative cooperation in the field of taxation and the exchange of information between member states. Along with Belgium and Bulgaria, Cyprus has not yet adopted or notified the Commission of all the national measures necessary to implement the directive, which amends the existing framework for administrative cooperation on tax matters, prompting the Commission to advance proceedings against all three member states. Directive (EU) 2025/872 provides for the standardisation of the collection of top-up tax information returns and the automatic exchange of the relevant data between member states’ tax authorities. This obligation forms part of the implementation of the directive on the global minimum tax rate for multinational groups and large domestic businesses. Failure to provide bank transaction data to OLAF It was found that Cyprus has not complied with its obligations regarding the European Anti-Fraud Office (OLAF), as Cypriot legislation does not allow the office to obtain banking data as part of investigations into suspected criminal offences. This obligation is set out in Article 7(3a) of the regulation, which was added under the 2020 revision to strengthen member states’ cooperation with OLAF in protecting the EU’s financial interests. The Commission considers that current Cypriot legislation conflicts with EU law and significantly limits the effectiveness of OLAF’s administrative investigations. Cyprus has a two-month deadline to submit its observations and address the shortcomings identified by the Commission. Subscribe to our Newsletter Latest News Medicover Genetics showcases impact of research and innovation to EU Commission and Ministry of Finance Bonnie Tyler, Total Eclipse of the Heart singer, dies at 75 San Fermin festival in Pamplona Paola Revenioti, Greek LGBTQI+ activist and publisher, dies at 68 Residents describe panic as brawl erupts on Xylophagou road Lawyer arrested for alleged sexual assault of 19-year-old inside drug squad’s office 20 years after historic semi-final run, Marcos Baghdatis lights up Wimbledon again Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.