Strengthening Cyprus’ Fight Against Illicit Finance
In a bold move to shed its past reputation, Cyprus has taken significant strides under the leadership of President Nikos Christodoulides to address concerns over money laundering and illicit finance. The establishment of a unified authority to oversee professional service providers, despite resistance from their professional bodies, marks a concrete step towards reform.
Building on this momentum, Cyprus has engaged in collaborative efforts with US and British authorities at a technocratic level to enforce sanctions effectively since last year. This collaboration was further solidified on Tuesday when the governments of Cyprus and the United States announced a Justice System cooperation aimed at enhancing Cyprus’ capabilities to counter illicit finance. A forthcoming memorandum of understanding between Cyprus police and the FBI will formalize this partnership, which also involves the Law Office of the Republic and the finance intelligence unit Mokas.
The joint statement highlighted that this increased cooperation is a direct response to President Christodoulides’ initiative to strengthen the nation’s ability to counteract illicit financial activities. US entities such as the FBI, OPDAT, Task Force KleptoCapture, and MLARS, in conjunction with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs and the US Embassy in Nicosia, have come together to fulfill Christodoulides’ request.
Direct cooperation with US authorities is set to bolster Cyprus law enforcement’s capacity in identifying and prosecuting financial crimes. This development follows the sanctioning of two Cyprus service providers linked to Russian oligarchs by the US and UK, which underscored the need for enhanced sanctions enforcement and monitoring.
President Christodoulides has acknowledged the necessity for external support and expertise for local law enforcement entities to be effective. While inviting US authorities into Cypriot affairs may draw criticism, it is seen as a necessary step for Cyprus to overcome its history of lenient Anti-Money Laundering (AML) controls and sanctions enforcement. This courageous decision by President Christodoulides reaffirms his dedication to improving Cyprus’ international standing and significantly raises the chances of success in the ongoing fight against illicit finance.