Financial crime and Russian oligarchs: how Cyprus intends to crack down

This article was originally published in English

Cypriot President Nikos Christodoulides revealed in an interview with The Associated Press on Monday that he had personally contacted an unnamed “third country” to ask for help in investigating allegations involving health care providers. Cypriot financial services.

An investigation by the International Consortium of Investigative Journalists (ICIJ) reveals that these Cypriot financial service providers helped Russian oligarchs hide their assets, while they were on the verge of being hit by international sanctions.

President Nikos Christodoulides has underlined his commitment to ensuring that there is “absolutely no shadow” over Cyprus, highlighting the potential impact on the country’s efforts to attract quality foreign investment.

The Cypriot president revealed that multiple investigations into allegations of sanctions evasion are currently underway, although specific details were not provided.

The request for assistance was accepted and a team of foreign experts will work with seven police investigators to examine old and new press reports.

These reports claim that lawyers and accountants based in Cyprus facilitated the movement of funds of Russian oligarchs, through a complex network of companies and trusts, in order to circumvent sanctions linked to the Russian conflict in Ukraine.

The International Consortium of Investigative Journalists published several articles last week citing leaked documents purporting to reveal the involvement of Cypriot companies in helping Russian oligarchs circumvent sanctions.

Zero tolerance for corruption

The president, Nikos Christodoulides, clarified that the foreign experts would not only contribute to improving the investigation process, but also to speed it up in order to demonstrate the “zero tolerance for corruption” from Cyprus.

This measure aims to strengthen citizens’ confidence in the justice system and protect the country’s reputation.

A key aspect of the President’s strategy to restore Cyprus’s image involves the establishment of a Single Supervisory Authority – an independent body made up of financial crime experts tasked with tackling financial malfeasance and evasion. sanctions.

A draft law for this initiative has been prepared for debate and approval by Parliament.

Trying to rebuild its image to attract private investment

In order to strengthen the police unit responsible for combating financial crime, the Cypriot president announced his intention to hire additional experts with legal or accounting training.

He defended Cyprus’s efforts to reform its banking sector since the 2013 financial crisis, acknowledging that it took time to restore the country’s image as a leading investment opportunity.

The President expressed his strong stance against any allegations tarnishing the name of Cyprus, highlighting their negative impact on attracting private investments.

Despite the difficulties, Nikos Christodoulides noted that countries in the wider Middle East have expressed interest in investing in Cyprus, particularly in the areas of energy, health services, education and technology. the information.

In the same interview, the Cypriot president addressed the proposal for a humanitarian corridor to Gaza and revealed that UN Secretary-General Antonio Guterres would soon inform the Cypriot government of his new choice of an envoy to take over talks on the country’s reunification, which have been deadlocked since 2017.