US and Cyprus Join Forces Against Financial Crimes
In a significant move to clamp down on financial misconduct, Cyprus and the US embassy in Nicosia have declared an enhancement in their joint efforts to tackle money laundering and financial fraud. A joint statement disclosed that the United States Department of Justice (DOJ), along with the Federal Bureau of Investigation (FBI) and the support of the US Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL), are set to work closely with Cypriot law enforcement.
The partnership will soon be cemented with the signing of a memorandum of understanding between the FBI and the Cyprus police. This alliance aims to improve the coordination between the attorney general’s office and Cyprus’s financial intelligence unit, Mokas, enhancing their collective capacity to detect, investigate, and prosecute financial crimes.
The DOJ has pledged to share its expertise with Cypriot officials throughout 2024, focusing on proactive measures against financial crimes connected to Cyprus. The DOJ’s commitment also includes significant prosecutorial assistance, marking a robust investment by the US in strengthening Cyprus’s law enforcement capabilities.
Both nations have expressed optimism about the future of this partnership, anticipating substantial progress from this increased level of cooperation between the American and Cypriot justice systems.
Sanctions Imposed on Cyprus-Based Company
In related news, a Cyprus-based company has come under scrutiny by the US for its alleged connections with Russia’s financial sector. Tokentrust Holdings, located in Limassol, has been sanctioned by the US and added to the Office of Foreign Assets Control (OFAC) list of designated entities due to its majority stake in Atomaiz, a Moscow-based fintech firm.
The US Ambassador to Cyprus, Julie Fisher, underscored the importance of collaboration with Cypriot authorities in addressing sanction evasion. The sanctions are part of a broader initiative by the US to target entities linked to Russian oligarchs with Kremlin ties.
Last year saw proactive measures from Cypriot President Nikos Christodoulides, who invited FBI and DOJ officials to assist in probing allegations against Cypriot financial service providers. These entities were suspected of helping Russian oligarchs bypass international sanctions imposed in the wake of Russia’s 2022 invasion of Ukraine.
Despite Cyprus’s assertions of compliance with international sanctions, the US continues to scrutinize several companies, lawyers, and accountants based in Cyprus for their potential roles in facilitating sanction evasion.
