US, Cyprus to Ink Deal Combatting Money Laundering, Russian Sanctions Evasion

On Tuesday, the United States and Cyprus announced their intention to strengthen their cooperation in the battle against money laundering, circumvention of sanctions, and other financial offenses through a new agreement. This pact will provide Cypriot law enforcement with access to American expertise in these areas.

An upcoming agreement between the FBI and the Cypriot police will be formalized, enabling the U.S. Department of Justice to support Cyprus in the early detection, investigation, and legal pursuit of financial crime cases. This collaboration was prompted by an invitation from Cypriot President Nikos Christodoulides to FBI and Justice Department officials last year, aimed at probing into the accusations against Cypriot financial services for aiding Russian oligarchs in evading international sanctions.

Despite Cyprus’s claims of compliance with global sanctions against Russia following its invasion of Ukraine in 2022, the U.S. has singled out various entities based in Cyprus, including companies, lawyers, and accountants, accusing them of facilitating sanction evasion efforts.