Financial Crime World

Cypriot Finance Plagued by Bribery and Corruption, Report Reveals

Widespread Problem Exposed in Latest Survey

A new report has shed light on the pervasive issue of corruption and bribery in Cyprus’ financial sector, with a staggering 88% of businesspeople surveyed believing that bribery is common in the north.

Key Findings

  • 58% of respondents consider corruption to be a “very serious problem”
  • Nearly one in ten (12%) have paid a bribe in the last year
  • Bribery is most commonly associated with:
    • Allocation and lease of public land and buildings (55%)
    • Incentives (46%)
    • Public contracts and licences (45%)
  • Least common in public utility services, where 53% of respondents reported no bribery

Abuse of Public Resources

  • 57% of respondents believe that misappropriation of funds for personal or party purposes is “very common”
  • Politicians (55%) were seen as the most corrupt group, followed by senior civil servants (46%)
  • Only 21% of respondents believed that clear procedures and accountability govern the allocation and use of public funds
  • 67% thought there are no independent institutions auditing public finances

Judiciary Effectiveness

  • Only 26% of respondents believed that the judiciary is independent enough to try political power holders for abuses
  • Only 24% thinking it is “very effective” in preventing corruption among politicians

Government’s Fight Against Corruption

  • Most respondents (65%) believed that the government was “very unsuccessful” in its fight against corruption
  • Only 9% of respondents thought the government was “very successful” in combating corruption

Election Practices

  • Seven in ten respondents reported that offering voters money or special favours during elections is a common practice, representing a significant increase from 2019 (52%)

Consequences and Future Reforms

The report’s authors warned that the widespread perception of corruption and bribery could have severe consequences for Cyprus’ economic stability and international reputation. As the country continues to grapple with these issues, it remains to be seen whether meaningful reforms will be implemented to address this endemic problem.