Cyprus has announced that it will implement a set of key anti-money laundering recommendations developed in collaboration with the United States, aiming to intensify its efforts to combat financial crime, including sanctions evasion and illicit financing.

The decision follows the conclusion of a nine-month mission by a team from the U.S. Federal Bureau of Investigation (FBI), which worked alongside Cypriot authorities to strengthen the country’s ability to investigate and prosecute complex financial crimes. The FBI mission was part of a bilateral initiative launched in 2023, focused on upgrading Cyprus’s enforcement framework to meet international standards.

As part of the mission, Cypriot police officers received specialized training in detecting and prosecuting cases involving money laundering and violations of sanctions imposed by the U.S., European Union, and United Nations. Training sessions were held both in Cyprus and at the International Law Enforcement Academy in Budapest, according to a previous joint statement by both governments.

According to reports from Euronews and the Associated Press, Government spokesman Konstantinos Letymbiotis confirmed that the American team delivered a detailed report outlining a number of reform recommendations. These include:

• Enhanced training for enforcement personnel

• Modernization of financial investigation technologies

• Legislative amendments to close regulatory loopholes often exploited for illegal financial flows

Cyprus is now actively working on implementing these recommendations, the spokesman said.

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The initiative was prompted by allegations that Cypriot financial service providers had assisted Russian oligarchs in circumventing international sanctions. In response, President Nikos Christodoulides invited the FBI and the U.S. Department of Justice to assist in overhauling Cyprus’s financial crime enforcement system. Christodoulides has publicly pledged to restore Cyprus’s reputation, which has long been tainted by associations with money laundering and sanctions evasion.

The U.S. support was originally provided through the Task Force KleptoCapture, a Biden administration initiative focused on tracing and seizing Russian assets. Although the task force has since been disbanded under the Trump administration, former President Trump has stated he is “strongly considering” new sanctions and tariffs on Russia if the war in Ukraine continues.

The United Kingdom is also contributing to Cyprus’s reform efforts. In December, the UK government pledged to share intelligence with the Cypriot Ministry of Finance to improve detection of illicit financial activity linked to Russian entities.