Cyprus considers legislation for digital check processing

On September 28, 2026, the Parliamentary Committee on Finance in Cyprus began discussing two bills proposed by the Ministry of Finance aimed at modernizing the check processing system. The legislation intends to allow citizens and businesses to submit checks for payment via bank mobile applications and digital channels, effectively removing the requirement for physical presence at a bank branch. The existing methods of check presentation will remain available, and the proposed changes do not alter the rights or obligations of the parties involved.

To facilitate this transition, the first bill amends the Bills of Exchange Law, while the second modifies the Criminal Code. Specifically, the latter ensures that in cases of dishonored checks submitted digitally, banks must electronically record the reason for non-payment. This electronic record will be admissible as evidence in court and will serve as a rebuttable presumption regarding its content. During the committee hearing, members of parliament raised concerns regarding digital security, the authenticity of digital images, and the legal implications of not having the original physical document. The clause-by-clause discussion is scheduled to continue next week.