Shocking Revelations of Money Laundering and Corruption in Cyprus

A global investigation by the International Consortium of Investigative Journalists (ICIJ) and Paper Trail Media, in collaboration with five esteemed journalistic organizations, exposes extensive evidence of corruption and money-laundering activities in Cyprus.

Investigation Uncovers Hundreds of Millions in Assets Linked to Anti-Democratic Actors and Sanctioned Individuals

Key Findings:

• Hundreds of millions of Euros in assets belonging to anti-democratic actors have been transferred through six Cypriot financial service providers.
• Some of these funds originated from sanctioned Russian oligarchs during the EU sanctions imposed on Russia.
• The investigation analyzed a trove of 3.6 million files, including confidential background checks, financial statements, and emails.

When Cyprus Joined the EU: Cyprus became the gateway for Russians seeking access to Europe. By 2014, an estimated $31 billion in Russian assets were in Cyprus.

Russian Oligarchs and the Cypriot Financial Sector

According to the Organized Crime and Corruption reporting Project (OCCRP), Russian oligarch Roman Abramovich is linked to two individuals with close financial ties to President Vladimir Putin in a secret $40m deal in 2010. Abramovich, who was sanctioned in April 2022, previously denied any financial relationship with the Russian leader.

PricewaterhouseCoopers Cyprus and other advisors reportedly aided one of Russia’s most powerful oligarchs, Alexei Mordashov, in transferring £1bn into a public company on the day he was placed under EU sanctions. The Cypriot finance ministry confirmed that a criminal investigation is underway in relation to this matter.

Syrian Petroleum Company: The Syrian Petroleum Company, controlled by the government of Bashar al-Assad, had conversations with a Cyprus-registered intermediary organization about conducting at least five transactions to a US-based organization between 2014 and 2019. Syrian petroleum was specifically named in US sanctions imposed in 2011.

Cyprus’ Response

The Government of Cyprus issued a statement in response to these findings, asserting, “There is zero tolerance on matters concerning sanctions evasion and law violation. The government is unequivocally committed to fighting corruption and illicit finance and taking all necessary actions to ensure full implementation of EU sanctions.”

Unyielding Pursuit of Transparency and Accountability

This investigation marks another significant milestone in the efforts to promote transparency and accountability in international financial transactions.