Legislative changes

Moneyval praises Cyprus progress on AML, crypto regulation

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Moneyval praises Cyprus progress on AML, crypto regulation

Cyprus has improved its measures for tackling money laundering and combating financing of terrorism, according to the latest Moneyval report. The Securities and Exchange Commission (CySEC) sees this as a ‘vote of confidence’ in financial regulation, especially for cryptos. The report found Cyprus to have improved its compliance with the Financial Action Task Force’s Recommendations, particularly in relation to Crypto-Asset Services Providers. Moneyval also noted progress towards improving compliance with non-profit organizations. Cyprus has made progress in addressing technical compliance shortcomings and is expected to report back to Moneyval in May 2025 on further progress. The country has achieved compliance or large compliance on 37 out of the 40 FATF Recommendations. CySEC has implemented significant measures to assess and reduce risks in the field of crypto-assets and improve compliance among providers. The publication of the report follows legislative changes to align AML/CFT laws with Moneyval and FATF standards.

Government ramps up crackdown of undeclared work

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Government ramps up crackdown of undeclared work

– Around eight per cent of the workforce, or 40,000 people, are illegally employed in Cyprus, resulting in a loss of revenue to the social insurance fund of €10 million a year.
– The government has approved a plan to strengthen measures to combat undeclared work, including implementing a system of extra-judicial fines for employers.
– The fine for each instance of undeclared work will increase from €500 to €1,000 and will be doubled in the event of a future offence by the same employer.
– Authorities will increase the number of inspections to target specific work sites and times, and there will be increased coordinated inspections between different departments.
– The government will conduct an outreach campaign for third-country nationals legally in Cyprus who are not identified as legal workers.
– The government will investigate employers of undeclared workers for links to people-smugglers.
– Legislative changes will be submitted to the House, including the creation of a digital census of all employees and liability for main contractors and subcontractors in cases of undeclared work.

Rich migrants are welcome in Cyprus

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Rich migrants are welcome in Cyprus

Cyprus is considering easing residency permit requirements for foreign nationals under a proposed bill. The proposal would grant residency permits to third-country nationals who invest €250,000 in housing and have an annual income of €40,000. The bill also includes provisions for additional family members. The proposal is currently being debated in the House Internal Affairs Committee. Some stakeholders suggest lowering the housing investment threshold to €150,000 to facilitate purchases of existing homes, while others argue that this could drive up housing demand and prices, negatively impacting local buyers. The regulations aim to attract foreign investment while ensuring financial stability for those obtaining residency, covering various categories of foreigners.

Cyprus considers raising retirement age, ending multiple pensions for officials

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Cyprus considers raising retirement age, ending multiple pensions for officials

Cyprus is debating pension reform, with a focus on modernizing the system and addressing sustainability concerns. Multiple pensions for government officials have emerged as a key point of contention, representing less than 10% of the strain on the system. The Ministry of Finance proposes raising the retirement age for government officials and parliamentarians to 65, aligning them with the general population. The International Labour Organisation is studying the Cypriot pension system and has highlighted the need for a balanced and sustainable system. Mercer analyzed 47 global pension systems, with European models performing the best. British Prime Minister Liz Truss sparked opposition for claiming a large annual pension after serving for only 44 days. Former UK Prime Ministers can claim the Public Duty Cost Allowance, but holders of the three great offices of state no longer receive a pension of half their last salary upon leaving office.

Traffic camera system completion expected by May

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Traffic camera system completion expected by May

The traffic camera system is expected to be completed in May with the installation of 90 fixed cameras. Pending issues include approval needed for specific points, such as one at the intersection in Polemidia where a fatal accident occurred. Changes are being made to improve visibility at intersections and increase the time to pay penalty notices. Plans are also in place to send penalty notices directly to drivers at airports, ports, and roadblocks. A bill is being considered to allow for SMS or email notifications of penalty notices. Awareness campaigns are being conducted to educate the public on intersection safety. Plans to increase penalty points for losing a driving license are pending, but a program for erasing points through road awareness courses is being promoted. Legislative changes are being made to address issues with non-delivery of penalty notices and unidentified violators.

Corporate Tax Rates and Legislation: Q1 2024 Accounting status

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Corporate Tax Rates and Legislation: Q1 2024 Accounting status

– Legislative changes affecting income taxes from January 1 to March 31, 2024 are outlined.
– Federal Bill C-59, related to the 2023 federal budget, received second reading on March 18, 2024.
– The federal budget will be presented on April 16, 2024.
– Some provinces and territories have tabled legislation to implement budget measures, but none relate to general corporate income tax changes.
– No significant updates related to the accounting for income tax occurred from January 1 to March 31, 2024.