Financial Crime World

International Financial Crimes Thrive in Cyprus: Human Trafficking, Arms Trafficking, Cybercrime, and more

People

Cyprus, the picturesque Mediterranean island nation located at the crossroads of Europe, Asia, and Africa, has grown into a significant hub for various transnational crimes. This beautiful island is home to:

  • Human Trafficking: Cyprus’s porous borders and thriving tourist industry make it a significant hub in the human trafficking networks leading to Europe [1]. Sexual exploitation is rampant, particularly during the tourist season. Coerced sexual contact takes place in bars, massage parlors, hotels, private apartments, and commercial sex outlets. Foreign workers, especially those in the agriculture and construction industries, and domestic workers face similar risks [2].
  • Forced Labour: While human trafficking is a significant issue, forced labour cases go unreported and are often ignored. These cases are frequently treated as mere labour disputes by the authorities [3].
  • Irregular Migration and People Smuggling: People arrivals via small boats, commercial ships, and illegally established universities in the Turkish Republic of Northern Cyprus (TRNC), leading to an increase in asylum applications [4]. This trend is particularly prominent among unaccompanied minors from sub-Saharan Africa and South Asia.

Trade

Cyprus sees its fair share of illicit trading activities, including:

  • Firearms Trafficking: Despite a relatively low gun crime rate, Cyprus is a significant transit country for firearms. Reports suggest that much of the arms trafficking originates from the TRNC [5].
  • Counterfeit Goods: Cyprus is a hotspot for counterfeit goods, with many fake goods originating from Turkey via the TRNC [6].
  • Excise Goods: The illegal trade of excise goods, such as tobacco, pesticides, and fireworks, thrives in the UN buffer zone [7].

Environment

Illicit activities against the environment, though not well-documented, include:

  • Illegal Logging: Despite protections, illegal logging takes place due to local demand for firewood [8].
  • Poaching: The poaching of migratory songbirds is the most common illicit activity in Cyprus’s fauna market [9]. This primarily occurs on military bases and is driven by local demand for songbirds in restaurants.

Drugs

The drug trade in Cyprus is largely limited but includes:

  • Heroin: The heroin trade is mainly destined for the domestic market [10].
  • Cocaine Trade: The cocaine trade is one of the largest criminal markets in Cyprus. Primarily entering the country on passenger flights and airfreight originating in Latin America, Belgium, or the Netherlands [11].

Cyber Crimes

Despite being a well-connected and technologically advanced country, Cyprus faces various cybercrimes, including:

  • Data Theft: Small- and medium-sized enterprises are common targets, with complaints of increases since the pandemic began [12].
  • Malware Attacks: Cyprus’s cyberspace is under constant threat from malware and ransomware attacks [13].

Financial Crimes

Financial crimes, such as internet-related fraud and forgery, remain a significant concern in Cyprus, despite efforts to combat corruption and improve transparency. Some key financial crimes include:

  • Corruption and Red Tape: Although Cyprus’s political system has not been significantly penetrated by organized crime, issues with corruption and red tape make it challenging to fight crime effectively [14].
  • Money Laundering: The now-defunct Cyprus Investment Programme led to the granting of passports to people who could invest at least €2.15 million in the country, resulting in suspicious money and high-risk individuals obtaining Cypriot citizenship [15]. [1]: Source: UNODC Global Report on Trafficking in Persons

[2]: Source: Amnesty International Report on Cyprus

[3]: Source: European Parliament Study on Human Rights and Human Trafficking in the EU

[4]: Source: United Nations High Commissioner for Refugees (UNHCR)

[5]: Source: The Cyprus Mail

[6]: Source: European Parliament Report on Counterfeit and Pirated Goods

[7]: Source: The European Court of Auditors

[8]: Source: European Environment Agency

[9]: Source: WWF Mediterranean Programme

[10]: Source: EMCDDA

[11]: Source: Europol

[12]: Source: European Commission report on Cyprus

[13]: Source: European Agency for Cybersecurity

[14]: Source: Global Integrity Report on Cyprus

[15]: Source: The Cyprus Mail