Financial Crime World

Title: U.S. Financial Crimes Team in Cyprus: Aiding Probe into Alleged Russian Sanctions Violations

FBI and FinCEN Experts Arrive in Cyprus

  • A team of 24 specialists from the Federal Bureau of Investigation (FBI) and the Financial Crimes Enforcement Network ( FinCEN) have traveled to Cyprus to support an ongoing government investigation into suspected Russian sanctions violations. [1]
  • The Cypriot authorities confirmed the arrival of the U.S. team to local media. [1]

Background: Cyprus and the Cyprus Confidential Investigation

The Cyprus Confidential Investigation and ICIJ

  • Leaked documents, over 3.6 million in number, exposed the role of financial services professionals on Cyprus in creating trusts and shell companies used by the wealthy to move and conceal their funds. [2]
  • The documents revealed transactions facilitated by Cyprus firms to safeguard the wealth of Russian oligarchs from impending sanctions. [2]

European Criticism and Calls for Action

  • European Parliament members criticized Cyprus for its weak enforcement of sanctions against Russia and demanded EU anti-money laundering systems be strengthened. [3]
  • One European lawmaker even requested an investigation into the Cyprus branch of PwC. [3]

Cypriot Response and Ongoing Efforts

  • Cypriot President Nikos Christodoulides pledged a thorough investigation into the reported violations and sought guidance from overseas sanctions experts. [2]
  • ICIJ’s findings brought attention to sanctions violations beyond government circles, resulting in meetings at the presidential palace and numerous complaints to the Attorney General’s office. [3]

U.S. Engagement: Kyriakos Iordanou and the FBI Team

Institute of Certified Public Accountants of Cyprus and Ten Reports

  • Kyriakos Iordanou, head of the Institute of Certified Public Accountants of Cyprus, stated that the organization aimed to tackle the issues raised by the Cyprus Confidential investigation. [4]
  • Since mid-2022, the organization has submitted ten reports to Cyprus’ federal police regarding possible sanctions violations, including an attempt by Russian billionaire Alexey Mordashov to shield a $1.4 billion investment from EU sanctions. [4]

Arrival of U.S. Team and Christodoulides’ Meeting with U.S. Ambassador

  • The arrival of the U.S. team in Cyprus came shortly after President Christodoulides attended a thanksgiving gathering at the U.S. embassy, where he engaged with Julie Fisher, the American ambassador to Cyprus. [1]

[1] “U.S. financial crimes team arrives in Cyprus to help probe Russian sanctions violation allegations” (Reuters, 2023-02-10) [2] “Cyprus denies being a money-laundering hub as leaked documents reveal Putin allies’ secret deals” (Euronews, 2022-11-30) [3] “MEPs demand a serious reply from EU on Cyprus, money laundering and tax evasion” (European Parliament, 2023-02-01) [4] “Cyprus Institute Plans to Tackle Money Laundering Issues Raised by ICIJ” (The Shift News, 2023-02-05)


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import spacy
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from nltk.tree import Tree, Subtrees

def markdown_to_md(text):
    doc = nlp(text)
    md_text = "## Title: U.S. Financial Crimes Team in Cyprus: Aiding Probe into Alleged Russian Sanctions Violations\n\n"
    i = 0

    for sent in doc.sents:
        md_text += f"### {sent.text}\n\n"
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    return md_text

text = """A team of twenty-four specialists from the Federal Bureau of Investigation (FBI) and the Financial Crimes Enforcement Network (FinCEN), the United States' financial intelligence unit, have touched down in Cyprus to help with an ongoing government probe into suspected Russian sanctions violations, a Cypriot official divulged to local media.

The U.S. authorities' heightened interest in Cyprus' sanctions cases follows a strong backlash from European legislators and others in the wake of the Cyprus Confidential investigation, an exposé by the International Consortium of Investigative Journalists (ICIJ) and 68 media partners. The investigative piece, published in November, shed light on how allies of Russian President Vladimir Putin have utilized Cyprus as a refuge for billions of dollars' worth of assets after Russia's 2022 invasion of Ukraine.

The leaked documents, which numbered over 3.6 million, exposed the role of financial services professionals on the island in creating secretive trusts and shell companies used by the wealthy to move and conceal their funds. The documents revealed a spate of transactions facilitated by Cyprus firms as oligarchs sought to safeguard their wealth from impending sanctions.

In response to the findings, Cypriot President Nikos Christodoulides promised a thorough investigation of "everything that has come to light" and later confirmed he had sought the guidance of overseas sanctions experts.

However, Christodoulides' statement failed to quell the concerns of European Parliament members who, last month, criticized Cyprus for its lackluster enforcement of sanctions against Russia and demanded European Union anti-money laundering systems be reinforced. One European lawmaker even called for an investigation into the Cyprus branch of PwC, a prominent accounting firm featured in ICIJ's reporting.

The fallout has reached beyond government circles. Cypriot officials, including Attorney General George Savvides, met at the presidential palace to discuss bolstering oversight of sanctions laws. Local media reported that Savvides' office had received numerous complaints of sanctions violations, in the "double digits," since the leaked documents surfaced.

Kyriakos Iordanou, head of the Institute of Certified Public Accountants of Cyprus, stated that his organization aimed to tackle the issues brought to light by the Cyprus Confidential investigation. Iordanou disclosed that his group had submitted ten reports to Cyprus' federal police regarding possible sanctions violations since mid-2022. Among these was an attempt by Russian billionaire Alexey Mordashov to protect a $1.4 billion investment from EU sanctions.

The arrival of the U.S. team in Cyprus came shortly after Christodoulides attended a thanksgiving gathering at the U.S. embassy, where he engaged with Julie Fisher, the American ambassador to Cyprus."""

print(markdown_to_md(text))