Financial Crime World

Cyprus Steps Up Efforts to Combat Financial Crime with US Support

New Cooperation Agreement with the United States Enhances Anti-Money Laundering Efforts

In a significant boost to its anti-money laundering efforts, Cyprus has announced a new cooperation agreement with the United States aimed at countering illicit financing on the island. The memorandum of understanding (MOU) between the Federal Bureau of Investigation (FBI) and the Cyprus National Police (CNP) is expected to enhance capacity in identifying and prosecuting financial crimes.

Request from President Christodoulides

The move comes following a request from President Christodoulides, who sought to further empower the Republic of Cyprus to counter illicit finance. The US Department of Justice (DOJ) and FBI, with support from the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL) and Embassy Nicosia, have established direct cooperation with Cypriot law enforcement entities.

Expertise and Prosecutorial Assistance

Under the agreement, the FBI will share its expertise with Cypriot counterparts to proactively detect, investigate, and prosecute cases involving financial crimes with a nexus to Cyprus. The US agency will also provide expert prosecutorial assistance, marking a substantial investment in Cypriot capacity.

Building on Existing Efforts

The cooperation aims to build on existing efforts to counter money laundering and sanctions evasion, with the DOJ set to share its experience with Cypriot counterparts in 2024. The agreement is expected to strengthen future prosecutions and improve the strength, integrity, and resilience of the Cypriot legal system and economy.

Collaborative Efforts

DOJ elements, including the FBI, OPDAT, Task Force KleptoCapture, and MLARS, collaborated with INL and Embassy Nicosia to respond to President Christodoulides’ request. The closer cooperation between American and Cypriot justice systems is seen as a welcome development, with both sides looking forward to the progress this collaboration will yield.

Impact on the Economy of Cyprus

The agreement is expected to have a significant impact on the economy of Cyprus, which has been grappling with financial crime issues in recent years. The country’s authorities are hopeful that the enhanced cooperation will help to improve trust and confidence in its financial system, ultimately supporting economic growth and stability.

Key Points:

  • The MOU aims to enhance capacity in identifying and prosecuting financial crimes
  • The FBI will share expertise with Cypriot counterparts to detect, investigate, and prosecute cases involving financial crimes with a nexus to Cyprus
  • Expert prosecutorial assistance will be provided by the US agency
  • The cooperation aims to build on existing efforts to counter money laundering and sanctions evasion
  • The agreement is expected to strengthen future prosecutions and improve the strength, integrity, and resilience of the Cypriot legal system and economy.