What this chapter covers
Money laundering is the process of making the proceeds of crime look lawful. In Cyprus it is a criminal offence under Law 188(I)/2007, and every regulated firm must be able to recognise it, whether it shows up as a cash deposit, a chain of transfers or a property purchase.
Terrorist financing works differently: the money is often clean, and the aim is to fund violence rather than to enjoy the proceeds. Sanctions add a third layer, with UN and EU lists of people and entities whose assets must be frozen. Since July 2025 Cyprus has a new sanctions authority and new criminal penalties.
Read the notes in order the first time. The first three explain laundering and its stages, the next two show where Cyprus's national risk assessment found the greatest exposure, and the last two cover terrorist financing and sanctions.
The 7 topics
Each note starts with a short answer and a table of the facts to remember.
Money laundering
- What is money laundering?What counts as criminal proceeds, which acts are laundering, and why the original criminal is not the only one at risk.14 years€500,0005 years€50,0006 min
- What are the three stages of money laundering?Placement, layering and integration, and a quick test for telling them apart.3 stages5 min
- What happens at the placement stage of money laundering?Structuring, smurfing and the other ways criminal cash first gets into the system.€10,000 cash cap5 min
Where the risks are in Cyprus
- What did Cyprus's national risk assessment find about money laundering?A medium domestic threat, five sector groups, and how banks, brokers, fund managers and insurers were rated.Medium5 sectors5 min
- Which payment businesses and professions are vulnerable to money laundering?Money remitters, cards, e-money, virtual currencies, trust and company service providers and non-profit organisations.Medium-low5 min
Terrorist financing and sanctions
- What is terrorist financing and how does it differ from money laundering?The offence under Cyprus law, five ways it differs from money laundering, and what the two share.8 years€150,0005 min
- How do financial sanctions work for firms in Cyprus?List-based freezes, the new National Sanctions Implementation Unit and the 2025 penalties.2 weeks5% of turnover6 min
The numbers to know
Every figure in this chapter, with the note that explains it.
| Figure | What it is | Note |
|---|---|---|
| 14 years and/or €500,000 | Maximum penalty for laundering by someone who knew the property was criminal | Topic 1: What is money laundering? |
| 5 years and/or €50,000 | Maximum penalty for laundering by someone who ought to have known | Topic 1: What is money laundering? |
| Up to €10,000 | Most that anyone trading in goods or providing services may pay or accept in cash, single or linked, since 31 December 2024 (with some exceptions) | Topic 3: What happens at the placement stage of money laundering? |
| Medium | Domestic money laundering threat in Cyprus's first national risk assessment (2018); the external threat was rated high | Topic 4: What did Cyprus's national risk assessment find about money laundering? |
| Medium-high | Vulnerability of online CFD brokers and traditional investment firms in the national risk assessment | Topic 4: What did Cyprus's national risk assessment find about money laundering? |
| 8 years and/or €150,000 | Maximum penalty for financing terrorism under Law 75(I)/2019 | Topic 6: What is terrorist financing and how does it differ from money laundering? |
| 2 weeks | Time to report information on frozen funds to the National Sanctions Implementation Unit | Topic 7: How do financial sanctions work for firms in Cyprus? |
| 5% of worldwide turnover | Maximum fine for a company that deliberately makes funds available to a listed person or fails to freeze (or €40 million where turnover cannot be established) | Topic 7: How do financial sanctions work for firms in Cyprus? |