Financial Crime World

Title: Investigative Journalists Expose Money-Laundering and Corruption in Cyprus: Implicating EU-Sanctioned Individuals and Organizations

An International Collaboration of Investigative Journalism Outlets Uncovers Financial Misconduct in Cyprus

  • Organized Crime and Corruption Reporting Project (OCCRP)
  • Bureau for Investigative Journalism
  • Direkt 36
  • Crime and Corruption Reporting Network
  • Arab Reporters for Investigative Journalism
  • International Consortium of Investigative Journalists (ICIJ)

These leading investigative journalism outlets collaborated to uncover a leaked cache of 3.6 million files from Cyprus, revealing extensive evidence of financial misconduct.

A Cache of Evidence Revealing Hundreds of Millions in Assets from Anti-Democratic Actors

The documents span from the mid-1990s to 2022, featuring confidential background checks, organizational charts, financial statements, bank account applications, and emails. These files allegedly show financial transactions related to sanctioned individuals and organizations.

Since Cyprus joined the European Union in 2004, it has emerged as a favored destination for Russians seeking to access Europe. By 2014, there were an estimated €31 billion in Russian assets on the island. Approximately 700 trusts and companies registered on the island were reportedly owned or controlled by Russian nationals under EU sanctions.

Controversial Findings: Oligarchs and Sanctioned Individuals

Russian Oligarch Roman Abramovich’s €40m Deal with associates of President Putin

The journalists linked Roman Abramovich, a Russian oligarch under EU sanctions since April 2022, to two individuals with close ties to Vladimir Putin in a secret €40m deal in 2010. Abramovich previously denied having any financial associations with Putin.

The journalists also allege that Cypriot financial institutions potentially aided Abramovich in breaching soccer’s financial fair play rules.

Russian Oligarch Alexei Mordashov’s £1bn Transfer

PwC Cyprus and other advisers supposedly aided Mordashov, another Russian oligarch, in an attempt to transfer £1bn into a public company on the day he was placed under EU sanctions in 2014. However, a criminal investigation is now being carried out by the Cyprus finance ministry.

Syrian Government’s Alleged Attempts to Conduct Transactions with a US-Based Organization

The investigation allegedly uncovered discussions between the Syrian Petroleum Company, controlled by the Syrian government, and a Cyprus-registered intermediary organization. Correspondence suggests the attempt to conduct five transactions with a US-based organization between 2014 and 2019, in violation of US sanctions.

The Government of Cyprus’ Response

The Government of Cyprus responded to the findings, stating that “there is zero tolerance on matters concerning sanctions evasion and law violation.” The government also stressed their commitment to fighting corruption and illicit finance and ensuring the full implementation of EU sanctions.