On 30 May 2023, the Republic of Cyprus had accepted a proposal from the UK for cooperation and the provision of technical assistance on issues regarding the combating of illicit finance, marking a significant step forward in strengthening international cooperation for Cyprus in financial matters. The collaboration between Cyprus and the UK entails the establishment of the Unit and the improvement of the legislative framework for sanctions based on best practices, particularly in line with the operation of the Office of Financial Sanctions Implementation (OFSI) model of the UK.

Since August 2023, the project manager and the project team have been engaged in a series of comprehensive consultations with key stakeholders, including government bodies such as the Ministry of Finance, the Central Bank of Cyprus (CBC), and regulatory authorities such as, the Cyprus Securities and Exchange Commission (CySEC), the Cyprus Police, the Cyprus Unit for Combating Money Laundering (MOKAS), the Law Office of the Republic of Cyprus, the Cyprus Bar Association, and other stakeholders. These consultations aimed to assess the current sanctions regime, identify areas for improvement and gather input for the proposed Unit.

The proposed timeline anticipates the establishment of the Unit by the end of 2024, provided that the relevant legislation is passed. This strategic timeline reflects a proactive approach to strengthening Cyprus's capacity for sanctions implementation and mitigating financial risks. Ultimately, these measures aim to demonstrate the dedication of Cyprus to uphold international standards and to combat financial crime.

The Ministry of Finance press release (in Greek) can be found here.