Cyprus Crackdown on Alleged Financial Crimes Involving Russian Oligarchs: A Collaborative International Effort

Cyprus Seeks Assistance from Third Country in Sanction Evasion Probes

President of the Republic of Cyprus, Nikos Christodoulides, announced on Monday that his administration had initiated contact with an unnamed ’third country’ to assist in investigating allegations of local financial service providers aiding Russian oligarchs in evading international sanctions.

Allegations and Potential Damages

Emphasizing Cyprus’ commitment to transparency and removing any ‘shadows’ over the country’s reputation, Christodoulides revealed multiple ongoing probes into alleged sanction evasions and the potential damage to Cyprus’ efforts to attract foreign investment.

Reports of Cypriot Firms Facilitating Circumvention of Sanctions

Old and new media reports suggest that Cyprus-based lawyers and accountants have played a role in facilitating funds for Russian oligarchs through a complex network of companies and trusts. Leaked documents from the International Consortium of Investigative Journalists (ICIJ) indicate the involvement of Cypriot firms in these activities.

Strengthening the Investigative Process with Foreign Experts

To improve the investigative process and expedite probes, Christodoulides shared plans to collaborate with a team of foreign experts in addition to seven local police investigators.

Zero Tolerance for Corruption

Combating financial malfeasance and sanction evasion remain top priorities for Cyprus in order to protect the nation’s integrity, rebuild domestic confidence in the justice system, and safeguard its reputation.

Establishing a Single Supervisory Authority

To further combat financial crimes, Christodoulides also announced plans to establish a Single Supervisory Authority—an independent body of financial crime experts responsible for combating financial malfeasance and sanction evasion.

Strengthening the Police’s Financial Crimes Unit

In an effort to bolster its financial crimes unit, the president has announced plans to hire additional experts with legal or accounting backgrounds.

Reforming the Banking Sector and Rebranding Cyprus

Since the 2013 financial crisis, Cyprus has been working to reform its banking sector and reposition the country as a prime investment opportunity. The lengthy process, however, requires patience and dedication.

Confirmation of UN Envoy’s Choice for Cyprus Talks

Outside of financial crimes, Christodoulides also confirmed that UN Secretary-General Antonio Guterres would soon notify Cyprus of his choice for a new envoy to explore the possibility of resuming talks to reunify the ethnically divided country. The envoy’s focus would be on creating a humanitarian corridor to Gaza.