Title: US-Cyprus Partnership: Strengthening Crackdown on International Financial Crimes

Background

Nicosia, Cyprus - In April 2023, extensive American-British sanctions were imposed against Cypriot business entities. As a response, the United States and Cyprus announced an official cooperation to address money laundering issues and efforts to evade sanctions.

Key developments:

• US Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed new sanctions.
• The US Ambassador to Cyprus acknowledged the close cooperation.
• Cypriot authorities confirmed the US request for increased cooperation.

Cooperation Announced

Yesterday’s announcement marked a significant step towards combating illegal activities and safeguarding the Republic of Cyprus’ economy.

US Sanctions and Cypriot Response

Last year, the Cypriot government announced its intention to cooperate with the US to combat money laundering and prevent Russian interests from circumventing restrictive measures via Cyprus.

Official Collaboration

The US Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), alongside the US Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL), are collaborating directly with Cypriot law enforcement entities.

Formalizing the Partnership

The partnership will be formalized through a Memorandum of Understanding (MoU) to be signed between the FBI and the Cyprus National Police (CNP), as well as the Law Office of the Republic (LOR) and the Finance Intelligence Unit (MOKAS) in the coming days.

Benefits of the Partnership

The US assistance will enable Cypriot authorities to proactively detect, investigate, and prosecute cases involving financial crimes with connections to Cyprus and provide expert prosecutorial assistance. This cooperation builds on existing efforts to counter money laundering and evasion of sanctions.

Historical Context

In April 2023, the Cyprus financial sector adopted Western sanctions, temporarily affecting numerous businesses and individuals in the country. This cooperation came in response to a request for greater expertise to enhance the Cyprus authorities’ capacity in combating economic crimes. The preparation for the arrival of FBI operational executives was already underway in early 2024.

Expected Outcomes

Through this closer partnership between the American and Cypriot justice systems, both parties hope to achieve significant progress in the ongoing fight against international financial crimes.