Filenews 31 January 2026 - by Michalis Chatzivasilis
Two Services related to the fight against organized crime are established on the basis of legislation that has been put to consultation by the Ministry of Justice. These are the Asset Recovery and Management Services that will be able to detect property acquired through illicit means and manage it accordingly.
The establishment of these two Services is provided for in a bill entitled the Prevention and Combating of Money Laundering (Amendment) (No. 3) Law of 2025. Asset Recovery Service means the Service that has been established in the Cyprus Police. The latter, according to the provisions of the bill, can detect and locate means and proceeds of crime or property that is or may be the subject of a decision to compensate or restore property to a victim. The Recovery Service may provide, upon request, to the court, any information relating to property that is located and may be relevant for the purpose of deciding on claims for restitution or compensation or restitution of assets.
Also, under the law, the transfer of property from an accused person to another person or property acquired by the other person from the accused is prohibited if, on the basis of the facts and circumstances of the case, the Court finds that the other person knew or ought to have known that the purpose of the transfer or transfer or acquisition was to avoid the issuance of a Confiscation Order. These incidents and circumstances include the following:
The transfer or transfer or acquisition of property was carried out free of charge or for an amount disproportionate to the market value of the assets, or the Asset Management Agency, before making an application to the Court for the sale/liquidation of the property, gives the affected or affected person the opportunity to request the sale of such assets or property himself.
According to the bill, confiscation orders issued and for which no appeal has been registered or is pending, are forwarded by the Attorney General and/or the Unit to the Asset Management Agency, for the purpose of managing the property and enforcing the confiscation order. Assets or means confiscated for reasons related to criminal offences referred to in the Law on the Definition of Criminal Offences and Penalties for the Violation of Restrictive Measures may be used to contribute to support mechanisms for third countries affected by situations for which Union restrictive measures have been adopted, in particular in cases of war of aggression (such as Ukraine).
Asset Detection and Commitment
The bill also provides for the establishment of an Asset Recovery Service in the Cyprus Police to facilitate cross-border cooperation and to support Police investigations in domestic criminal cases regarding asset tracing investigations. This Service is staffed by members of the Cyprus Police, which is provided with adequate financial, human, technical and technological resources and appropriately qualified personnel for the effective execution of its responsibilities. Staff have specialised training and access to the exchange of best practices.
The Service is headed by a member of the Police, appointed by the Chief of Police. The work of the service deals with the following:
> Detection and tracing of instruments, proceeds of crime or property, when necessary to support police investigations in criminal cases and the European Public Prosecutor's Office.
> Detection and tracing of instruments, proceeds of crime or property that are or may be the subject of a freezing or confiscation decision issued by a competent authority in another Member State.
> Cooperation and exchange of information with the asset recovery offices of other Member States and the European Public Prosecutor's Office to detect and trace instruments, proceeds of crime or property that are or may be the subject of a freezing or confiscation order.
It is provided that in order to carry out its duties, the Service may request MOKAS, the Customs Department and the Tax Department to cooperate with them, when this is necessary for the detection and detection of means, proceeds of crime or assets.
It is also empowered to trace and trace assets of persons and entities subject to Union restrictive measures, where this is necessary to facilitate the detection of criminal offences, at the request of national competent authorities.
