On Wednesday, the European Commission launched infringement proceedings against Cyprus, sending a letter of formal notice for failure to comply with its obligations regarding the European Anti-Fraud Office (OLAF), as Cypriot law does not allow the agency to obtain banking information in the context of investigations into suspected criminal offenses.

According to the Commission, Cypriot law does not allow OLAF to obtain, upon request, information on bank accounts and records of banking transactions in the context of administrative investigations when there is no reasonable suspicion of a criminal offense.

This obligation is set forth in Article 7(3a) of the Regulation, which was added during the 2020 revision, in order to strengthen Member States’ cooperation with OLAF in protecting the financial interests of the European Union. For its part, the Commission considers that the current Cypriot legislation conflicts with EU law and significantly limits the effectiveness of OLAF’s administrative investigations.

This is only the second infringement procedure the Commission has launched on this specific issue, following the corresponding case against Ireland in the previous package of infringement proceedings, which the EU’s executive branch issued on June 4, 2026.

Cyprus has two months to submit its comments and address the shortcomings identified by the Commission. If the response is not deemed satisfactory, the Commission may proceed to issue a reasoned opinion, as provided for in the next stage of the infringement procedure.

Source: KYPE