Bribery and Corruption in Cyprus Finance Exposed: Leaked Data Reveals Enablers of Dirty Money
A Culture of Bribery and Corruption Threatens Global Efforts to Combat Financial Crime
A recent investigation into five Cypriot firms providing corporate, accounting, and auditing services has uncovered a culture of bribery and corruption that is undermining global efforts to combat financial crime. The leaked data, analyzed by a consortium of media outlets including the International Consortium of Investigative Journalists and Paper Trail Media, reveals that these firms continued to work with high-risk individuals even after they were designated under EU sanctions.
Cyprus: A Hotspot for Stashing and Shuffling Illicit Assets
The scandal highlights the significant role played by Cyprus’ non-financial sector in the global financial system, making it a hotspot for stashing and shuffling illicit assets from Russia and elsewhere. The investigation shows that these firms not only operated in Cyprus but also established companies and provided services abroad, part of a broader picture of professional enablers orchestrating the flow of dirty money across borders.
Calls for Decisive Action Against Enablers
Transparency International has called on Cypriot authorities to take decisive action against enablers in the non-financial sector, which it claims is long overdue. Maíra Martini, Interim Head of Policy and Advocacy at Transparency International, said:
“These enablers cater to the super-wealthy from around the world with no questions asked, selling secrecy and shielding assets from anti-corruption agencies and law enforcement authorities.”
Shortcomings in Self-Regulation and Decentralized Supervision
The investigation has also revealed clear shortcomings in self-regulation within the sector, exacerbated by decentralization of supervision between multiple bodies. The EU’s upcoming changes to its anti-money laundering framework are seen as a step in the right direction, with new measures needed to stop the types of abuse that have been exposed in Cyprus.
Key Findings:
- Five Cypriot firms continued to work with high-risk individuals despite EU sanctions
- Firms operated globally, establishing companies and providing services abroad
- Enablers in the non-financial sector cater to super-wealthy individuals with no questions asked
- Shortcomings in self-regulation and decentralized supervision enable abuse
- EU’s upcoming changes to anti-money laundering framework aim to stop such abuses