Cyprus Police Probe Russian Tycoon’s £1bn Transaction Amid Sanctions

This article reveals that Moscow businessman Oleg Deripaska is under investigation in Cyprus over a £1bn transaction that took place just days before he was hit with EU and US sanctions in 2023.

Investigation Into Oligarch’s £1bn Transfer

Oleg Deripaska, a Russian oligarch with an estimated net worth of £14bn, allegedly moved the funds on 25 February 2023, the day he was added to EU and US sanctions lists for alleged links to organized crime and corruption. His companies, BASH Metal and En+, were also targeted.

1. Transactions Under Investigation The Cyprus authorities are working with their European counterparts to determine how much of the £1bn transfer occurred within the country. Local media reported that some of the transactions were made in suspicious circumstances through a chain of companies connected to the oligarch. Up to £800m was sent on that day, with the balance being moved over the following week.

2. Background of Sanctions Imposition The EU and US imposed sanctions on Deripaska following a series of investigations by their agencies, which accused him of various wrongdoings including money laundering, tax evasion, and organized crime. The sanctions, which froze his assets and excluded him from EU markets, came after years of allegations against the businessman.

Cyprus as a Concern for Money Laundering

The revelations come on the heels of mounting pressure on European countries to crack down on money laundering and other financial crimes. Cyprus, a member of the EU since 2004, is a growing concern due to its perceived role in facilitating such activities.

1. European Commission Report Earlier this year, the European Commission reported that Cyprus was a “high-risk” jurisdiction for money laundering and terrorist financing. The report criticized Cyprus for a lack of progress in addressing the problem.

2. Allegations of Misuse of Public Funds In October 2023, the island nation’s finance minister resigned amid allegations that his family had misused public funds, further fuelling concerns over the country’s financial system.

3. Plans to Strengthen Regulations The Cypriot government has pledged to strengthen its regulations, but critics argue that more needs to be done. EU officials have warned Cyprus that it risks being expelled from the Schengen Area if it fails to address the issue.

Other Countries under Scrutiny

Cyprus is not the only EU member state that has come under fire for its perceived role in facilitating financial crimes. Earlier this year, Estonia was accused of allowing the Russian bank, SSB, to operate in its jurisdiction, allegedly allowing it to transfer illegal funds between Russia and the West. The UK, a non-EU member, has also faced scrutiny over money laundering and other financial crimes in the City of London.

The Need for Cooperation and Transparency

Experts argue that more transparency and cooperation between countries are needed to combat financial crimes effectively. An EU official stated, “The fact that someone can move a large sum of money across borders within hours without being detected speaks volumes about the current state of anti-money laundering regulations.”

Ongoing Investigations

The investigations into Deripaska’s transactions are ongoing, and it is not clear if any actions will be taken against the individuals or companies involved. However, the case highlights the need for greater scrutiny of financial transactions, particularly those involving politically exposed persons and sanctioned individuals.

This marks the latest development in the long-running story of Russia’s role in global finance, which has seen multiple investigations and revelations involving oligarchs and government officials. Cyprus remains under the spotlight for its role in facilitating such transactions.