U.S. Financial Crime Experts Deploy to Cyprus Amidst Probe into Russian Sanctions Violations

A contingent of U.S. financial crime experts, comprising around two dozen specialists from the Federal Bureau of Investigation (FBI) and the Financial Crimes Enforcement Network (FinCEN), has arrived in Cyprus. This move is in response to an ongoing government investigation into suspected Russian sanctions violations, prompted by the International Consortium of Investigative Journalists’ (ICIJ) Cyprus Confidential investigation.

The ICIJ’s report, based on over 3.6 million leaked documents, revealed how individuals close to Russian President Vladimir Putin used Cyprus as a haven for billions of dollars in assets, even after Russia’s 2022 invasion of Ukraine. The leaked files implicated Cyprus-based financial services providers in facilitating transactions to shield wealth from impending sanctions.

Following the revelations, European lawmakers and others strongly reacted to the investigation, prompting an intensified interest from U.S. authorities in Cyprus sanctions cases. Cypriot President Nikos Christodoulides swiftly pledged a comprehensive government investigation in response to the findings.

The U.S. team’s deployment underscores the gravity of the situation, with concerns raised about lax enforcement of sanctions against Russia in Cyprus. The move follows discussions among Cypriot officials, including Attorney General George Savvides, about enhancing oversight of sanctions laws. The head of the Institute of Certified Public Accountants of Cyprus reported submitting 10 reports to federal police on possible sanctions violations.

The U.S. team’s arrival follows the Cypriot president’s attendance at a gathering at the U.S. embassy, where he met with U.S. Ambassador to Cyprus Julie Fisher. The investigation and collaboration with U.S. experts mark a significant development in addressing potential financial crimes and sanctions violations in Cyprus.