Cyprus establishes new Asset Management Office to handle illicit proceeds

On September 9, 2026, government officials in Cyprus held a ministerial meeting to discuss the implementation of a new framework for managing assets derived from illegal activities. The meeting was attended by Minister of Energy, Commerce and Industry Michalis Damianou, Minister of Justice and Public Order Costas Fytiris, and the Director of MOKAS (Unit for Combating Money Laundering).

The initiative follows a European Union directive concerning the recovery and confiscation of assets. Under this new system, the Department of Insolvency is being designated as the Asset Management Office (AMO). This body will be responsible for the professional administration of seized and confiscated assets. During the discussion, officials focused on defining operational parameters, assigning specific responsibilities, and establishing a coordinated approach between all involved stakeholders to ensure the transition to the new system is effective.

This development marks a significant shift in the handling of proceeds of crime in Cyprus. By consolidating functions under the AMO, the government aims to enhance the management of assets frozen during legal proceedings. Further steps will involve finalizing the procedural framework to ensure the full functionality of the newly established office and maintaining inter-agency cooperation.