Financial Crime World

Cyprus Courts Offer Injunctive Relief for Cross-Border Disputes

======================================================

In a significant development for commercial matters and jurisdictional disputes in Europe, Cyprus courts have announced that they will provide injunctive relief to aid proceedings in foreign jurisdictions. This move is expected to facilitate the recognition and enforcement of judgments and arbitral awards across borders.

Injunctive Relief in Aid of Foreign Arbitration

Cyprus has signed the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which allows the Cyprus Courts to recognize and enforce arbitral awards issued in various jurisdictions. The courts may issue injunctive relief, such as freezing assets located in Cyprus, pending the enforcement of an arbitral award.

Examples of Injunctive Relief

  • Freezing assets located in Cyprus
  • Restraining parties from dissipating assets
  • Seizing assets to secure a foreign judgment or arbitral award

Recognition and Enforcement of Foreign Judgments

Cyprus has also ratified Regulation (EU) No. 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, as well as the Lugano Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters. This means that judgments issued in several foreign jurisdictions, including those in the European Union, Denmark, Norway, Iceland, and Switzerland, may be recognized and enforced in Cyprus.

Jurisdictions with Recognition and Enforcement Agreements

  • European Union
  • Denmark
  • Norway
  • Iceland
  • Switzerland

Rogatory Proceedings

Cyprus accepts rogatory requests from various jurisdictions, including China, Denmark, France, Germany, Greece, India, Israel, Russia, Singapore, Switzerland, the United Kingdom, and the USA. Rogatory proceedings allow for the exchange of information between countries to aid in cross-border litigation.

Examples of Jurisdictions with Rogatory Requests

  • China
  • Denmark
  • France
  • Germany
  • Greece
  • India
  • Israel
  • Russia
  • Singapore
  • Switzerland
  • United Kingdom
  • USA

Using Technology to Aid Asset Recovery

The Cyprus Courts have recognized the importance of technology in asset recovery, particularly with regards to cryptocurrencies and non-fungible tokens (NFTs). The courts are now more willing to accept evidence related to these digital assets and may issue interim freezing orders that can target these assets specifically. This move is expected to aid in the recovery of assets and prevent fraudsters from hiding their ill-gotten gains.

  • Interim freezing orders for cryptocurrencies
  • Orders targeting non-fungible tokens (NFTs)
  • Acceptance of digital evidence in court proceedings

The Cyprus Courts’ decision to provide injunctive relief for cross-border disputes is a significant step forward in facilitating international commercial litigation. It demonstrates the country’s commitment to cooperation and mutual recognition with other jurisdictions, and its willingness to adapt to new technologies and trends in finance.