Cyprus has long been more than just a scenic locale. Historically, it stood as a crossroads for empires, a melting pot of cultures, religions, and now, in a modern twist, a magnet for an astonishing influx of foreign capital. This evolution has seen Cyprus morph from a geopolitical prize into a pivotal financial hub, predominantly attracting Russian wealth. However, this transformation has come at the cost of the island's reputation, now perceived as a somewhat shady financial haven.

A recent investigation spearheaded by the International Consortium of Investigative Journalists (ICIJ), Paper Trail Media, and an alliance of 67 media entities has unraveled the complex financial web Cyprus finds itself entangled in. This extensive probe, lasting eight months, has brought to light Cyprus's significant yet previously understated role in aiding and abetting the financial maneuvers of Russian President Vladimir Putin's regime, as well as other authoritarian figures globally.

The investigation unearths Cyprus's emergence as a haven for Russian oligarchs, aiding in the concealment and movement of immense fortunes. This phenomenon has been particularly pronounced in the context of the EU's inability to regulate Cyprus's burgeoning financial sector, now bloated with questionable Russian funds. According to the investigation, the involvement of PwC's Cypriot unit in assisting Russian oligarchs to maneuver their wealth was a significant finding, highlighting the challenges faced by the global financial systems in curbing such practices.

>>In a Nutshell: Cyprus Confidential - A Financial Hub's Role in Aiding Russian Oligarchs<<

Two standout revelations from the investigation involve Syria and the Kremlin. The Syrian state-owned oil company reportedly skirted U.S. sanctions by cloaking its transactions with a U.S.-based oil equipment supplier, using a Cyprus-based intermediary. In a separate thread, the probe uncovered that Kremlin associates funneled payments through Cyprus to influence a German journalist known for his favorable coverage of Russia’s autocratic leader, illustrating the reach of Moscow's shadowy media influence operations.

>>Nikos Christodoulides Affirms Commitment to Integrity in Light of ICIJ Investigation<<

The heart of the investigation lies in the 3.6 million leaked files from financial service providers and a website company. These files, meticulously analyzed by ICIJ, reveal sanctioned Russian oligarchs' offshore holdings, exposing nearly 800 companies and trusts linked to these high-profile individuals.

In response to the revelations, a Cyprus government spokesperson has asserted significant strides in stabilizing the banking sector and enforcing anti-money laundering measures. According to the investigation, this claim is juxtaposed with the island's historical and ongoing role as a significant player in the global financial narrative, marked by its newfound status as a conduit for clandestine financial flows.

Read the Full Investigation

The Cyprus Confidential investigation reveals how Cyprus remained an unseen hub for money laundering for Russian oligarchs and authoritarian regimes.

The investigation identifies:

• Arms dealers.

• Digital surveillance companies.

• A Syrian oil company under Assad.

Financial service providers and multinationals were found willing to find alternative routes for the funds of President Putin's inner circle, despite sanctions imposed since 2014.

Documents from Cyprus Confidential show that Cypriot service companies continued to work for 25 Russians who were under Western or Ukrainian sanctions following the annexation of Crimea (2014) & the war in Donbass (Eastern Ukraine). Data analysis showed that Cypriot ompanies worked for entities controlled by Russia and registered in tax havens (such as: British Virgin Islands, Jersey, Isle of Man, Liechtenstein, Hong Kong).

The ICIJ identified 800 companies & trusts registered in tax havens & controlled by Russians, who have been under sanctions since 2014.

Among these are over 650 Cypriot companies & trust funds. According to Cyprus Confidential, PwC in Cyprus collaborated with at least 12 Russians who had already been sanctioned in 2014, while sanctions were imposed in 2022 on 39 more Russian clients due to their ties with President Putin. PwC placed its Cyprus office & 1,100 employees at the service of Putin's allies amid the Russian invasion of Ukraine.

For example, industrialist A. Mordashov, appears to have transferred an investment of 1.4 billion dollars from his name the day after Western sanctions were imposed. The Cypriot MeritServus, linked to Abramovich, handled 100 Cypriot companies and trusts of Russian oligarchs' interests.

Among these is the Kremlin propagandist K. Malofeyev, who was on the list of Western sanctions. K. Malofeyev had come under scrutiny by the US Department of Justice in 2015 for his attempt to get involved in the television landscape of Greece and Bulgaria, with the creation of a TV station that would promote Russian positions.

Click the tag below to read more