What became evident from April 2023, following the extensive American-British sanctions against Cypriot business entities, was further affirmed in the most official manner yesterday.
The reason is the joint announcement between Cyprus and the USA, which officially seals the cooperation of the Republic with the Americans in addressing issues related to money laundering and efforts to circumvent sanctions.
This development was more or less expected.
A year ago, after the sanctions that had a pronounced Cypriot touch, the government had announced that there would be cooperation with the USA.
This was aimed at combating the phenomenon of legitimising proceeds from illegal activities and preventing entities (primarily of Russian interests) from bypassing restrictive measures through Cyprus.
Since then, various developments have unfolded, either officially announced or revealed through publications.
It is indicative that the day before yesterday, within the framework of the latest package of restrictive measures imposed by the competent service of the US Department of the Treasury (OFAC), there was prior consultation between the relevant governmental services of America and Cyprus.
Shortly after yesterday’s announcement by OFAC regarding the list of 15 legal and natural persons subjected to sanctions, the US Ambassador to Nicosia, Julie Davis Fisher, clearly spoke of a joint effort.
In her message on the “X” platform, after first announcing the new package of restrictions, she added that she “appreciates the close cooperation with Cypriot authorities to hold sanctions evaders to account.”.
A reference that clearly reveals clear communication between the Republic of Cyprus and the Federal country.
Cyprus’s request
Yesterday’s joint announcement emerged shortly after the Council of Ministers meeting, as announced by the President of the Republic.
“In response to a request from President Christodoulides, to further empower the Republic of Cyprus (ROC) to counter illicit finance, the United States Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), with support from the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL) and Embassy Nicosia, have established direct cooperation with ROC law enforcement entities to enhance capacity in identifying and prosecuting financial crimes.”
It is further clarified that the cooperation will take an official form with the signing of agreements, while recording the departments and services that will implement the agreed actions: “To this end, in the coming days, the FBI and the Cyprus National Police (CNP) will sign a Memorandum of Understanding formalizing collaboration between the two justice systems, including with key law enforcement partners, the Law Office of the Republic (LOR) and the Finance Intelligence Unit (MOKAS).”
There is clear mention of tightening bilateral relations, which will result in strengthening the Cypriot legal system and the economy of the Republic.
It is emphasized once again that this cooperation arises from an initiative by Nicos Christodoulides: “Building on existing efforts to counter money laundering and sanctions evasion, the DOJ in 2024 will share its experience with Cypriot counterparts to proactively detect, investigate, and prosecute cases involving financial crimes with a nexus to Cyprus, and will provide expert prosecutorial assistance – a substantial U.S. investment in Cypriot capacity.
With this increased U.S. partnership, the ROC intends to further enhance its efforts to counter money laundering and strengthen future prosecutions to continue to improve the strength, integrity, and resilience of the Cypriot legal system and economy.
DOJ elements, including the FBI, the Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT), Task Force KleptoCapture, and the Money Laundering and Asset Recovery Section (MLARS), collaborated with INL, and Embassy Nicosia, to respond to President Christodoulides’ request.
The closer cooperation of the American and Cypriot justice systems is a welcome development, and both sides look forward to the progress this collaboration will yield.”
Recall that in April 2023, the financial sector of Cyprus had adopted Western sanctions (USA and UK), freezing bank accounts even of relatives of employees of Cypriot companies that had been subjected to restrictions.
Then, the blow to the sector providing administrative services on our island was also felt.
Public statements followed from the government about the cooperation of the Republic of Cyprus with the USA, aiming for the latter to assist with expertise (FBI agents with specialisation) in actions to combat economic crime.
An indicative example is the article of Phileleftheros on January 13, which referred to contacts of officials from the US Embassy in Nicosia with executives of competent services and departments of the Cypriot state to prepare the ground for the arrival of FBI operational executives.
