On 10 July 2025, Cyprus launched the National Sanctions Implementation Unit, known as NSIU (in Greek: EMEK – Εθνική Μονάδα Εφαρμογής Κυρώσεων), to strengthen its ability to apply and monitor international financial sanctions.
In July 2025, the Cyprus Parliament passed three key legislative acts forming the legal basis for a major reform in sanctions enforcement. These include:
- The Law on the Establishment of the National Sanctions Implementation Unit of 2025
- The Law on the Criminalisation of the Violation of EU Restrictive Measures of 2025
- The Amendment Law on the Protection of Persons Reporting Violations of Union and National Law of 2025
These laws collectively introduced a new, stricter regime for sanctions implementation. Central to this reform is the creation of the National Sanctions Implementation Unit (NSIU), also known as EMEK.
The establishment of NSIU marks a major milestone in Cyprus’s journey to enhance its sanctions regime and reinforce its standing as a transparent financial centre. The new unit consolidates existing bodies under a unified authority within the Ministry of Finance and is fully aligned with EU Directive 2024/1226 (the definition of criminal offences and penalties for the violation of Union restrictive measures). It gains broad investigative power to request information, conduct audits, freeze assets, and impose administrative fines up to one hundred thousand euros.
Further reinforcing the sanctions framework is the Criminalisation Law, which introduces harsher penalties for serious sanctions violations—fines can reach up to forty million and prison terms may extend to five years. NSIU's mandate includes managing sanctions licensing applications (accepting documents in English), issuing binding directives, and collaborating with international enforcement networks.
International cooperation is a key part of NSIU's framework. Cyprus agreed with the UK to receive technical advice and intelligence sharing, and the US has provided training support to strengthen enforcement capabilities. This enhances efforts to disrupt illicit financial flows and ensure sanctions effectiveness—measures that have already contributed to freezing roughly €1.9 billion in Russian-held assets since 2022.
More details will be provided upon the official publication of the laws.
How Can Bybloserve Management Assist You?
At Bybloserve Management, we closely monitor both EU sanctions directives and Cyprus’s evolving legal framework so that our clients stay informed and compliant. We support you in identifying and assessing sanctions exposure across corporate structures, evaluating compliance procedures, handling applications or requests from NSIU, and liaising with the relevant competent authorities as required.
For more information, please send your queries at info@bybloserve.com