Cyprus introduces new legislation to confiscate unexplained wealth

The Cypriot government has introduced a new amendment bill to the anti-money laundering law, aiming to enhance the detection, freezing, and confiscation of assets linked to organized crime. Submitted to the Parliament's plenary session on September 17, 2026, the legislation seeks to align national laws with the European Union Directive 2024/1260 regarding asset recovery.

A significant feature of the proposed law is the ability to confiscate unexplained wealth, even in the absence of a prior criminal conviction. Previously, the state was required to secure a final court verdict against a suspect before proceeding with asset seizure, a process that could take years. Under the new regulations, the Attorney General can apply to the court to order the confiscation of assets identified during a criminal investigation, directly targeting the financial gains of criminal syndicates.

This legislative move reflects a shift toward more aggressive measures against the local underground economy. By bypassing long judicial delays, the government intends to neutralize illegal economic benefits immediately. The initiative is currently progressing through the parliamentary procedure, signaling a change in how the state manages the proceeds of criminal activity.