The Republic of Cyprus and the United States of America announced their collaboration in the field of justice to enhance the capabilities of Cypriot Authorities in combating illegal financial activities.

According to a statement from the Presidency of the Republic, the United States, responding to the request of the President of the Republic, Nicos Christodoulides, to further strengthen the Republic of Cyprus' capabilities in addressing illegal financial activities, has established direct cooperation between the U.S. Department of Justice, the Federal Bureau of Investigation (FBI), supported by the Bureau of International Narcotics and Law Enforcement Affairs and the U.S. Embassy in Nicosia, with the competent Cypriot law enforcement authorities. This cooperation aims to empower the Republic to identify and prosecute financial crimes.

For this purpose, in the coming days, the FBI and the Cypriot Police will sign a Memorandum of Understanding, formalizing the collaboration between the legal systems of the two countries, including the competent Law Enforcement Authorities, the Legal Service of the Republic, and the Unit for Combating Money Laundering (MOKAS).

"In continuation of ongoing efforts to address money laundering and sanction evasion, the U.S. Department of Justice will, within 2024, share its expertise with the respective Cypriot Authorities to proactively identify, investigate, and prosecute cases involving financial crimes related to Cyprus, providing relevant expertise – a significant U.S. investment in Cyprus' capabilities," the announcement adds.

Further noted is that "with the strengthening of bilateral relations, the Republic of Cyprus aims to further enhance its efforts in combating money laundering and to fortify its legal system and economy."

"The entities of the U.S. Department of Justice, as well as other competent U.S. Authorities, have responded to the request of the President of the Republic, N. Christodoulides," the statement points out, emphasizing that "the closer cooperation of the two legal systems is a positive development, and both sides look forward to the results this collaboration will bring."

In related news, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) imposed sanctions on thirteen legal entities and two individuals, including a company based in Cyprus, for activities in the financial services and technology sectors of the Russian economy, including entities developing or offering services in virtual assets enabling the evasion of U.S. sanctions.

According to a statement from the American Department, five entities were included because they are owned or controlled by individuals designated by OFAC.

It adds that many of the legal and natural persons facilitated transactions or offered other services that helped OFAC-designated entities evade sanctions, and that this is part of OFAC's action on February 23, 2024, to target companies serving Russia's critical financial infrastructure and limit Russia's use of the international financial system to promote its war against Ukraine.

The list includes Tokentrust Holdings Ltd., based in Cyprus, which is the majority shareholder of Atomaiz and was designated according to Executive Order 14024 for operating or having operated in the financial services sector of the Russian Federation economy.

"Russia is increasingly turning to alternative payment mechanisms to bypass U.S. sanctions and continue funding its war against Ukraine," said Deputy Treasury Secretary Brian Nelson, adding that the Treasury Department will continue to expose and disrupt companies seeking to assist sanctioned Russian financial institutions in reconnecting with the global financial system.

The companies named by OFAC either assisted in the creation or operation of blockchain-based services or have activated virtual currency payments in the Russian financial sector, thus allowing potential sanction evasion, it is mentioned.