The proposed legislation aims to create two specialised units focused on tracing and managing criminal assets.
- The proposed legislation aims to create two specialised units focused on tracing and managing criminal assets.
Criminal assets: New Units for Asset Recovery
The Ministry of Justice has initiated a public consultation on a significant bill, the Prevention and Suppression of Money Laundering (Amending) (No. 3) Law of 2025. This legislation plans to form an Asset Recovery Unit within the Cyprus Police, dedicated to detecting and tracing the proceeds of organised crime.
Roles and Responsibilities
The Asset Recovery Unit will not only be responsible for identifying criminal assets but will also work on compensation orders for victims. In conjunction with this unit, a second body, the Asset Management Unit, will oversee the execution of confiscation orders.
Utilising Seized Assets for Humanitarian Aid
One noteworthy aspect of the proposed bill is its provision for the use of seized assets linked to breaches of EU restrictive measures. These assets could potentially support third countries affected by aggressive wars, with specific mention of aid for Ukraine.
Strengthened Legal Framework
The legislation introduces stringent rules regarding property transfers. Courts will have the authority to prevent defendants from transferring assets to third parties if there is evidence that the recipient was aware—or should have been aware—that the transfer aimed to circumvent a confiscation order. This includes transactions where property is either gifted or sold at a price significantly lower than its market value.
Advanced Resources for Effective Operations
To enhance its capabilities, the Asset Recovery Unit will be staffed by specialised police officers equipped with advanced technological resources. This approach is aimed at improving cross-border cooperation and supporting investigations led by the European Public Prosecutor’s Office (EPPO).
Coordination with National Authorities
The unit will have direct access to crucial information from the Customs Department, the Tax Department, and MOKAS, the Unit for Combating Money Laundering. This access will facilitate the tracing of assets belonging to individuals and entities subject to EU sanctions, aiding in the detection of criminal activities as per requests from national authorities.
