Title: US and Cyprus Join Forces to Combat Financial Crimes and Enhance Cybersecurity
New Partnership to Strengthen Cooperation Against Financial Crimes and Cybersecurity Threats
In response to concerns over money laundering, sanctions evasion, and other illicit activities originating from Cyprus’ financial and professional services sectors, the United States and Cyprus have announced a new partnership to enhance cooperation against financial crimes and bolster cybersecurity.
Memorandum of Understanding (MOU) between US and Cypriot Law Enforcement Agencies
According to a joint statement released on Tuesday, Cypriot law enforcement agencies are preparing to sign an MOU with the US Justice Department and FBI. The MOU aims to strengthen efforts to identify and prosecute financial crimes with links to Cyprus.
- Expertise Sharing - US law enforcement bodies will share their expertise with Cypriot counterparts to proactively detect, investigate, and prosecute financial crimes.
- Prosecutorial Assistance - The US Department of Justice will provide expert prosecutorial assistance in such cases.
- Involvement of US Departments - The US State Department’s Bureau of International Narcotics and Law Enforcement Affairs and the Cyprus Law Office of the Republic will also be involved.
- MOKAS Input - The country’s Finance Intelligence Unit, known as MOKAS, will also provide input.
Response to International Cyprus Confidential Investigation
The renewed partnership follows an international investigation called Cyprus Confidential, which exposed Cyprus’ role in moving dirty money for authoritarian regimes and undemocratic actors, including Russian President Vladimir Putin’s regime.
- Revelations from ICIJ - Analysis of over 3.6 million leaked documents revealed almost 800 companies and trusts registered in secrecy jurisdictions that were owned or controlled by Russians sanctioned since Russia’s invasion of Crimea in 2014.
- Cypriot Government Response - In response to the revelations, Cypriot President Nikos Christodoulides called for American assistance, leading to FBI and FinCEN agents and officials being dispatched to Cyprus.
- Establishment of Oversight Body - Last December, the Cyprus government approved the establishment of a professional-services sector oversight body to review cases that could violate international sanctions.
Criticisms and Concerns
However, the formation of this oversight body has drawn criticism from the Cyprus Bar Association, which claims it was not adequately consulted prior to the government’s approval. The Association voiced concerns that the plan may infringe upon attorney-client privilege and potentially create other issues.
Protecting Economies, Maintaining Stability, and Promoting Transparency
With this new partnership, both Cyprus and the US are taking steps to strengthen their collaboration in addressing financial crimes and cybersecurity threats, aiming to protect their economies, maintain stability, and promote transparency.