Financial Crime World

Title: U.S. and Cyprus Join Forces to Combat Financial Crimes and Money Laundering

Partnership to Enhance Countermeasures Against Financial Crimes

Cypriot authorities have announced a partnership with the United States to strengthen their countermeasures against money laundering, sanctions evasion, and other financial crimes linked to the country’s financial and professional services sectors. The collaboration includes law enforcement agencies from both nations and several departments.

Collaborative Agencies and Departments

  • Cypriot police
  • U.S. Justice Department
  • Federal Bureau of Investigation (FBI)
  • U.S. State Department’s Bureau of International Narcotics and Law Enforcement Affairs (INL)
  • Cyprus Law Office of the Republic
  • Cyprus Finance Intelligence Unit (MOKAS)

Motivation for the Partnership

The partnership was initiated after an investigation published in November 2021 by Cyprus Confidential, a cross-border journalism collaboration led by the International Consortium of Investigative Journalists (ICIJ), Paper Trail Media, and 67 media partners. The project, named the “Cyprus Papers,” exposed Cyprus as a critical hub for movingdirty money for various authoritarian regimes and anti-democratic actors, including Russian President Vladimir Putin’s regime.

Findings of the Investigation

ICIJ’s analysis of the leaked documents revealed:

  • Over 3.6 million documents
  • Nearly 800 companies and trusts in secrecy jurisdictions
  • 650 of these were in Cyprus

Cyprus’ Response

Following the investigation, Cyprus pledged to address the issue and held a press conference with President Nikos Christodoulides.

US Assistance

  • 24 FBI agents and officials from the U.S. Treasury Department’s Financial Crimes Enforcement Network traveled to Cyprus in February 2022 to aid local authorities.
  • The Cyprus government approved the creation of a professional-services sector oversight body to review cases potentially violating international sanctions.

Newly-Formed Authority

  • Headed by the Cyprus Securities and Exchange Commission (CySEC)
  • Collaborates with the Cyprus Bar and Accountants Associations

Concerns and Response

  • The Cyprus Bar and Accountants Associations expressed concerns over possible threats to attorney-client privilege.
  • FBI and Department of Justice declined to comment when contacted by ICIJ.