The Ministry of Justice has launched a public consultation on new legislation that will establish two specialised units to trace, seize, and manage assets linked to organised crime.
Under the proposed bill, titled the Prevention and Suppression of Money Laundering (Amending) (No. 3) Law of 2025, an Asset Recovery Unit will be formed within the Cyprus Police. This unit will be tasked with detecting and tracing the proceeds of crime or assets that may be subject to compensation orders for victims.
A second body, the Asset Management Unit, will handle the execution of confiscation orders. The bill provides that seized assets linked to the violation of EU restrictive measures—such as those involving aggressive wars—could be used to support third countries affected by those situations, specifically referencing aid for Ukraine.
The legislation also introduces strict rules on the transfer of property. Courts will be empowered to block defendants from transferring assets to third parties if it is determined the recipient knew, or should have known, the transfer was intended to avoid a confiscation order. This includes cases where property is gifted or sold significantly below market value.
The Asset Recovery Unit will be staffed by specialised police members and provided with advanced technological resources to facilitate cross-border cooperation and support European Public Prosecutor’s Office (EPPO) investigations. The unit will have direct access to information from the Customs Department, the Tax Department, and MOKAS (the Unit for Combating Money Laundering).
Furthermore, the unit is authorised to trace the assets of individuals and entities subject to EU sanctions to assist in the detection of criminal offences upon request from national authorities.