Cyprus has become the focus of an international money laundering operation, involving the transfer of vast sums, through the luggage of travellers.
The operation, spanning from 2023 to the present day, came to light following the investigation into a 31-year-old Ukrainian woman, who reported the theft of a bag containing €420,000 in Limassol.
Authorities believe the money is being funnelled into Cyprus by at least two criminal networks operating through various European Union member states.
Information obtained by Phileleftheros points towards a Central European country being used as a transit hub in this scheme.
In their efforts to crack down on these networks, Cyprus Police, have been coordinating with international law enforcement bodies since 2023.
Their objective is not only to arrest the individuals directly involved but also to dismantle the infrastructure supporting such illicit activities, Phileleftheros writes.
A strategy employed by the criminal groups, familiar to the Cypriot authorities, involved the declaration of cash amounts exceeding €100,000 by travellers. This led to a collaboration between the Cyprus Police and the Customs Department to enhance information sharing.
In September 2023, a step was taken when the Customs Department agreed to notify the police of any traveller making such declarations.
This protocol was affirmed in a recent statement by the Customs Department, which clarified, “Declarations of cash assets worth €100,000 or more are forwarded to the Police for information and action.”
Theft of €420,000
The case of the 31-year-old Ukrainian woman, however, exposed a discrepancy in her account.
Initially, upon her arrival in Cyprus, she declared to the Customs Department that the €420,000 was a loan for a real estate transaction. Yet, to police investigators, she claimed the money was from personal savings.
This contradiction has led authorities to probe into potential money laundering activities involving multiple individuals.
Last Saturday, the Nicosia District Court issued a five-day detention order against the 31-year-old woman, who is now being investigated for her alleged involvement in a criminal organisation and money laundering.
As established by investigations, between August 2023 and March 2024, she had travelled multiple times to Cyprus, carrying around six million euros in total, which she declared to the Customs Department.
Recent cases
The recent incidents highlight a concern over the transfer of large sums of money into Cyprus.
In a notable case reported last January, a 66-year-old Ukrainian was arrested in Munich with €455,000 in cash, attempting to travel to Cyprus. Moreover, the murder of a Russian citizen in occupied Kyrenia last November, suspected to involve a substantial undisclosed sum, has intensified scrutiny over such activities.
Also, in June 2023, a 28-year-old Belgian citizen was arrested at Paphos airport as he was travelling with €161,520, which he had not declared.
The “Global Initiative Against Transnational Organised Crime” in its 2023 report acknowledges Cyprus’s progress in tackling money laundering but stresses the need for further improvements in regulatory mechanisms and law enforcement capabilities to combat these sophisticated criminal enterprises effectively.
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