Cyprus receives FBI report on measures to tackle financial crime and sanctions evasion

The government of Cyprus has said it will adopt recommendations of a security initiative with the United States to fight money laundering, sanctions evasion and other financial crimes during which a team from FBI was seconded to the Mediterranean island nation for nine months.

As noted in a relevant report by the Associated Press (AP), the FBI helped train Cypriot police in identifying and prosecuting cases of illegal financing and attempts to evade US, European Union and UN sanctions imposed on any third country.

"The US team has also produced a detailed report outlining specific recommendations and proposals including additional staff training, upgrading high-tech systems and amending existing legislation, Cyprus Government Spokesman Konstantinos Letymbiotis told The Associated Press," the report notes.

According to AP, Letymbiotis said Cypriot law enforcement authorities are currently looking to put into use the recommendations to bolster their effectiveness.

"The joint initiative was set up under the Biden administration after Cypriot President Nikos Christodoulides in 2023 invited FBI and Justice Department officials to assist with investigations into allegations that Cypriot financial service providers had helped Russian oligarchs skirt international sanctions," AP reported.

The news service went on to say, "Since then, the Trump administration has disbanding the Biden-era Task Force KleptoCapture program which was aimed at seizing the assets of Russian oligarchs. Though last week President Donald Trump said he is 'strongly considering' levying new sanctions and tariffs on Russia for its war against Ukraine."

The Associated Press also pointed out that President Christodoulides, "has pledged to clean up Cyprus's reputation as a money laundering and sanctions-evasion hub. As part of those efforts, Cypriot law enforcement agencies received training on financial investigative and forensic accounting techniques both locally and at the International Law Enforcement Academy in Budapest, Hungary, according to a Cyprus-U.S. joint statement issued last year."

AP also noted that, Britain said last December it would share information with the Cypriot Ministry of Finance “to disrupt and intercept the flow of illicit finance through Europe to ensure the effectiveness of sanctions on (Vladimir) Putin’s war machine.”