Call for Enhanced Measures Against Money Laundering in Cyprus
In a recent development, the Cyprus Integrity Forum has voiced its concerns regarding the ongoing issues of sanctions evasion and money laundering in the northern part of Cyprus. This statement comes in response to a Deutsche Welle documentary that exposed how Iranian and Russian nationals have been purchasing property in the region as a means to circumvent international sanctions.
The non-governmental organization highlighted the lack of a regulatory framework in the north that effectively prevents money laundering or the evasion of sanctions. This situation stands in stark contrast to the practices of the Republic of Cyprus, which aligns with Western standards and adheres to European Union laws.
The urgency of addressing these financial malpractices has been underscored by the recent surge in sanctions, particularly in the wake of Russia’s military actions in Ukraine. The international community, including the US, UK, and EU, has intensified efforts to undermine Russia’s economic stability as a form of retaliation.
In a proactive move, the Cypriot government announced on Tuesday its collaboration with the United States, involving agencies such as the Federal Bureau of Investigation (FBI), to strengthen its fight against money laundering and ensure compliance with sanctions. The Cyprus Integrity Forum has seized this moment to urge the government to establish a robust oversight authority and an independent body dedicated to sanctions compliance.
Amidst criticism that the government has not been taking these issues with the gravity they deserve, last month’s announcement about the formation of an oversight body has been met with cautious optimism. The proposed body is now set to be deliberated in parliament, marking a potential step forward in Cyprus’s commitment to combating financial crimes and upholding international law.