Brussels: The European Commission has launched infringement proceedings against Cyprus, sending a letter of formal notice over the country's failure to comply with European Union rules governing cooperation with the European Anti-Fraud Office (OLAF).
According to Cyprus News Agency, Cypriot legislation does not allow OLAF to obtain, upon request, information on bank accounts and banking transaction records during administrative investigations where there is no reasonable suspicion of a criminal offence. The Commission argues that this restriction undermines OLAF's ability to effectively investigate cases involving potential fraud affecting the EU's financial interests.
The obligation stems from Article 7(3a) of the revised OLAF Regulation, introduced in 2020 to strengthen cooperation between EU member states and the anti-fraud office. Brussels maintains that Cyprus' current legal framework is incompatible with EU law and significantly limits the effectiveness of OLAF's administrative investigations.
The case marks only the second infringement procedure initiated by the Commission on this specific issue, following similar action against Ireland in the previous package of infringement decisions published on 4 June 2026.
Cyprus now has two months to submit its observations and address the shortcomings identified by the Commission. Should the response prove unsatisfactory, the Commission may proceed to the next stage of the infringement procedure by issuing a reasoned opinion.