Financial Crime World

USA and Cyprus Join Forces to Combat Money Laundering and Sanctions Evasion

In a significant move to strengthen their cooperation in the fight against financial crimes, the United States of America (USA) and the Republic of Cyprus (ROC) have announced their partnership to tackle money laundering and sanctions evasion.

Background

  • Extensive American-British sanctions touched several Cypriot business entities in the past year (Reuters)
  • The Cyprus government announced its intention to collaborate with the USA to counter financial crimes (Nicosia Times, 2021)

New Sanctions

  • The USA Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed new sanctions on fifteen legal and natural persons
  • The US Ambassador to Nicosia, Julie Davis Fisher, acknowledged close cooperation with Cypriot authorities to enforce these measures

Enhanced Cooperation

In response to a request from President Nicos Christodoulides, the USA’s Department of Justice (DOJ) and Federal Bureau of Investigation (FBI) have established direct cooperation with ROC law enforcement entities.

Signed Agreements

  • Memorandum of Understanding between the FBI and the Cyprus National Police
  • Cooperation agreement between the Law Office of the Republic and the Finance Intelligence Unit

Expertise Sharing

  • The USA’s Department of Justice plans to share its expertise with Cypriot counterparts
  • Proactively detect, investigate, and prosecute cases involving financial crimes with a connection to Cyprus

Economic Consequences

Earlier this year, the Cyprus financial sector faced the consequences of adopting Western sanctions, with accounts being frozen for relatives of employees of sanctioned Cypriot companies.

Collaboration and Assistance

  • Cyprus government’s intention to collaborate with the USA to tackle economic crime
  • Deployment of FBI agents with relevant expertise to assist in investigations

Conclusion

This collaboration between the American and Cypriot justice systems is a welcome development for both sides, with anticipation for the progress it will bring.