Title: “New Partnership Between US and Cyprus to Combat Money Laundering and Financial Crimes”

Collaboration to Tackle Financial Crimes in Cyprus

Cyprus and the United States are strengthening their collaboration to address money laundering, sanctions evasion, and other financial crimes originating from Cyprus’ financial and professional services sectors.

Following a request from Cypriot President Nikos Christodoulides for assistance
Joint Statement on Tuesday announces new partnership

MoU between Cypriot Law Enforcement Agencies and the US Justice Department & FBI

Cypriot law enforcement agencies will sign a memorandum of agreement with the U.S. Justice Department and Federal Bureau of Investigation.

Identify and prosecute illicit financial activities
DOJ sharing expertise with Cypriot counterparts
Proactively detecting and investigating such cases

Involvement of the State Department and Cyprus Law Enforcement Agencies

State Department’s Bureau of International Narcotics and Law Enforcement Affairs involvement
Cyprus Law Office of the Republic and MOKAS (Finance Intelligence Unit)

Response to Investigative Journalism by the International Consortium of Investigative Journalists (ICIJ)

ICIJ’s investigation into Cyprus’ role in moving funds for Russian President Vladimir Putin’s regime
Over 3.6 million leaked documents uncovered over 800 companies and trusts linked to Russian individuals sanctioned since 2014

Cyprus’ Reaction to the ICIJ Findings

Cyprus authorities promised to investigate all allegations of wrongdoing
FBI and US delegates arrived in Cyprus in November 2021 to help with investigations

Creation of a Professional-services Sector Oversight Body

Approved in February 2022, led by the Cyprus Securities and Exchange Commission

Concerns from Cyprus Bar Association

Potential risks to attorney-client privilege
Other complications

FBI & Department of Justice’s Comments on ICIJ’s Request

FBI and Department of Justice declined to comment on ICIJ’s request.