European Commissioner for the Economy Paolo Gentiloni emphasized on Wednesday evening that circumventing sanctions is unacceptable, in response to queries about the Cyprus Confidential investigation, revealed through the ICIJ. Gentiloni highlighted the EU's active stance against tax avoidance, including a proposal to counter the misuse of shell companies and initiatives within the national Recovery and Resilience Plans. Gentiloni stressed that the EU possesses some of the world's strictest regulations against money laundering. However, he acknowledged that these measures do not completely eliminate such criminal activities. He reiterated the EU's firm position on sanction circumvention.

In a discussion about the Cyprus Confidential investigation during the Autumn 2023 Economic Forecast presentation, Gentiloni noted his close following of the investigation. He stated that it's challenging to form a comprehensive opinion at present but promised to revisit the topic later. The Commissioner emphasized the EU's efforts against tax avoidance, expressing hope that pending proposals, which require unanimous consensus, will advance. He specifically referred to the Commission's "Unshell Directive," aimed at preventing the misuse of shell entities for tax purposes.

>>6 Q&As About Cyprus Confidential<<

Gentiloni also expressed confidence in the effective use of the EU’s Recovery and Resilience Plan, particularly for reducing aggressive tax planning in several countries. On the topic of money laundering, Gentiloni pointed out that the EU's stringent rules are among the toughest globally, but acknowledged that they do not fully guarantee the prevention of such crimes. He concluded by affirming the EU's unwavering commitment to supporting Ukraine, emphasizing the seriousness with which the EU approaches the enforcement of sanctions and its dedication to combating tax avoidance and money laundering.

"Europe urgently needs stronger anti-money laundering and sanctions enforcement rules, we are reminded by Cyprus Confidential. We call for a plenary debate on this pressing issue next week in Strasbourg. We are working on a deal that would ensure that oligarchs cannot so easily evade sanctions in the EU and that enablers are properly regulated. It has to be done this year. PwC has to be investigated over its alleged role in helping Russian oligarchs evade EU sanctions," the S&D Group said. 

The Greens/EFA responded to ICIJ's latest investigation on Cyprus' financial firms' alleged role in aiding Russian oligarchs. "Today, the International Consortium of Investigative Journalists (ICIJ) has just released their latest investigation into how financial firms in Cyprus have allegedly aided Russian oligarchs and billionaires in hiding their wealth offshore."

Gwendoline Delbos-Corfield MEP, Greens/EFA Member of the LIBE Committee, comments: “The Cyprus Confidential release shows that only one weak link in the chain can undermine the fight against corruption, money laundering and oligarchs hiding their wealth in the EU. We must close all loopholes for corruption, wherever they exist in Europe. All EU countries must implement and enforce Anti-Money Laundering legislation to the letter. It is imperative that a strong and ambitious EU anti-money laundering package is adopted and implemented as soon as possible. More transparency is essential to ensure that oligarchs cannot hide behind shell companies and dodgy offshore structures to conceal their dirty money.”

Click the tag below to read more