Finance:Cyprus Confidential

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Short description: Leak and investigative journalism about Cyprus

Cyprus Confidential is a journalism project investigating financial services in Cyprus and their role in allowing avoidance of international sanctions, and implementation of Russian state goals. It is conducted by the International Consortium of Investigative Journalists, Paper Trail Media and 69 media partners including Distributed Denial of Secrets and the Organized Crime and Corruption Reporting Project (OCCRP) and more than 270 journalists in 55 countries and territories.[1][2] Other media partners included Arab Reporters for Investigative Journalism, the Belarusian Investigative Center, The Bureau of Investigative Journalism, CBC, Der Spiegel, The Guardian , Le Monde, Politiken, Syrian Investigative Reporting for Accountability Journalism, Ukraine’s Slidstvo and The Washington Post .[2]

The investigation suggests that "67 of the 105 Russian billionaires on the 2023 Forbes World’s Billionaires List used financial services firms on the island of Cyprus to hide their wealth and keep it out of reach from Western sanctions".[3] The leaks include confidential information from financial services companies, mostly with connections to Cyprus, showing strong links with high-up figures in the Kremlin, some of whom have been sanctioned.[4][5]

The investigation reveals how Russian oligarchs transferred large amounts of assets to Cyprus after the Russian invasion of Ukraine. The US, UK and EU imposed sanctions on more than 1,600 individuals and entities after Moscow launched its invasion of Ukraine in February 2022.[6][7]

Investigation

Leak

The investigation is based on 3.6 million leaked files from the mid-1990s to April 2022, and include confidential background checks, organizational charts, financial statements, bank account applications and emails.[5] The leaks come from six Cyprus-based financial services providers and a Latvian firm that sells Cypriot corporate registry documents:[8][2]

  • ConnectedSky
  • Cypcodirect
  • DJC Accountants
  • i-Cyprus
  • Kallias & Associates
  • MeritKapital
  • MeritServus

According to the ICIJ

The leaked records from Cypcodirect, ConnectedSky, i-Cyprus and Kallias & Associates were obtained by Paper Trail Media. Distributed Denial of Secrets obtained documents from Kallias & Associates, which were then shared with Paper Trail Media and ICIJ. DJC Accountants’ records were obtained by Distributed Denial of Secrets and shared by the Organized Crime and Corruption Reporting Project.[8]

Findings

The investigation found more than 650 companies and trusts registered in Cyprus and more than 100 in other secrecy jurisdictions that were owned or controlled by Russians who have been sanctioned since 2014. The companies and trusts used to hide properties and other investments from oversight and included mother companies of Russian holdings and subsidiaries of Russian conglomerates including Evraz, which supplies the train rails used to transport arms and ammunition to Russian troops in Ukraine.[1][4][5]

The investigation purports to show "how 67 of the 105 Russian billionaires on the 2023 Forbes World’s Billionaires List used financial services firms on the island of Cyprus to hide their wealth and keep it out of reach from Western sanctions".[3][4][5] The leaks contain confidential information from financial services companies, mostly with connections to Cyprus, and show that country to have strong links with high-up figures in the Kremlin, some of whom have been sanctioned.[4]

The investigation reveals how Russian oligarchs transferred large amounts of assets[9] to Cyprus after the Russian invasion of Ukraine.[10][11] The US, UK and EU imposed sanctions on more than 1,600 individuals and entities after Moscow launched its invasion of Ukraine in February 2022.[6][7] The investigation found that Cyprus financial firms were working for more than 95 sanctioned individuals and 44 PEPs who were "linked to state-owned companies or organizations deemed to merit added scrutiny because of a heightened risk involving corruption or other illicit activity".[5]

The investigation revealed secret talks to help Syria evade oil-industry sanctions[4][12] and that German journalist Hubert Seipel had received more than $700,000 from a shell company linked to Russian oligarch Alexei Mordashov as a "sponsorship" to write books about Vladimir Putin and the "political environment in the Russian Federation".[4][13][14] The investigation also revealed how the spyware firm Intellexa exploited loopholes in Cyprus[15][16] and that US surveillance giant Verint Systems's network of operations includes subsidiaries in India.[17][18]

The investigation implicated Bulgarian businessman Ognian Bozarov in the payment behind the 2008 bombing and assassination of Ivo Pukanić and another journalist at the Croatian magazine Nacional, which Bozarov denied.[19][20] It also revealed Sudanese businessman and alleged Hamas financier Abdelbasit Hamza's involvement with a Cyprus company that mines Egyptian gold.[21][22]

Response

Government responses

Governments including Cyprus president Nikos Christodoulides and European lawmakers began responding to the investigation's findings in less than 24 hours.[23]

In November 2023, members of the European Parliament called for a crackdown on financial corruption and for member states that allow sanctions violations to be held accountable.[24] Sophie in 't Veld the Parliament rapporteur for penalties for the violation of Union restrictive measures said that "When it’s about corruption and financial wrongdoings, the national authorities very often are the culprits. They’re complicit. The European Union is turning into a gangster’s paradise, because there is complete impunity."[25][26] That month, Cyprus president Christodoulides promised to launch a probe and Cyprus Finance Minister Makis Keravnos said a criminal investigation had been initiated against firms including PwC for Russian sanctions violations.[5][23][27]

In December 2023, the United States announced it was sending two dozen experts from the Federal Bureau of Investigation and the Financial Crimes Enforcement Network to Cyprus to assist with 29 cases related to money laundering and Russian sanctions violations.[28][29][30]

Other

The Greens–European Free Alliance called for EU countries to close loopholes in response to the investigation.[23][31]

See also

References

  1. ↑ 1.0 1.1 "Inside Cyprus Confidential: The data-driven journalism that helped expose an island under Russian influence - ICIJ" (in en-US). 2023-11-14. https://www.icij.org/investigations/cyprus-confidential/leaked-data-journalism-methodology/. 
  2. ↑ 2.0 2.1 2.2 "About the Cyprus Confidential investigation - ICIJ" (in en-US). 2023-11-14. https://www.icij.org/investigations/cyprus-confidential/about-cyprus-confidential-investigation/. 
  3. ↑ 3.0 3.1 Tognini, Giacomo (14 November 2023). "Cyprus Confidential: ICIJ Reveals How 67 Russian Billionaires Used Cyprus Financial Firms To Hide Their Wealth". https://www.forbes.com/sites/giacomotognini/2023/11/14/cyprus-confidential-icij-reveals-how-67-russian-billionaires-used-cyprus-financial-firms-to-hide-their-wealth/?sh=38c031a22136. 
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 "Cyprus Confidential: Leaked Roman Abramovich documents raise fresh questions for Chelsea FC: ICIJ-led investigation reveals how Mediterranean island ignores Russian atrocities and western sanctions to cash in on Putin's oligarchs" (in en). The Irish Times. 15 November 2023. https://www.irishtimes.com/business/financial-services/2023/11/15/cyprus-confidential-leaked-roman-abramovich-documents-raise-fresh-questions-for-chelsea-fc/. 
  5. ↑ 5.0 5.1 5.2 5.3 5.4 5.5 "Cyprus ignores Russian atrocities, Western sanctions to shield vast wealth of Putin allies - ICIJ" (in en-US). 2023-11-14. https://www.icij.org/investigations/cyprus-confidential/cyprus-russia-eu-secrecy-tax-haven/. 
  6. ↑ 6.0 6.1 "UK announces new sanctions in response to Russian sham elections in Ukraine". Government of the United Kingdom. 29 September 2023. https://www.gov.uk/government/news/uk-announces-new-sanctions-in-response-to-russian-sham-elections-in-ukraine. 
  7. ↑ 7.0 7.1 Payne, Julia; Baczynska, Gabriela (12 September 2023). "EU to cease sanctions against three Russian businessmen this week, sources say". Reuters. https://www.reuters.com/world/europe/eu-cease-sanctions-against-three-russian-businessmen-this-week-sources-2023-09-12/. 
  8. ↑ 8.0 8.1 "Frequently asked questions about the Cyprus Confidential investigation - ICIJ" (in en-US). 2023-11-15. https://www.icij.org/investigations/cyprus-confidential/faqs-cyprus-leaked-files-offshore/. 
  9. ↑ "Leak reveals majority interest in Roman Abramovich’s nearly $1 billion art collection was transferred to his ex-wife ahead of sanctions - ICIJ" (in en-US). 2023-09-22. https://www.icij.org/investigations/russia-archive/leak-reveals-majority-interest-in-roman-abramovichs-nearly-1-billion-art-collection-was-transferred-to-his-ex-wife-ahead-of-sanctions/. 
  10. ↑ "As sanctions loomed, accounting giant PwC scrambled to keep powerful Russians a step ahead - ICIJ" (in en-US). 2023-11-14. https://www.icij.org/investigations/cyprus-confidential/pwc-cyprus-russia-oligarchs-ukraine-sanctions/. 
  11. ↑ "Cyprus firm helped a Putin ally move $5 million the day he was sanctioned - ICIJ" (in en-US). 2023-11-15. https://www.icij.org/investigations/cyprus-confidential/russian-oligarch-sanctions-petr-aven-luxury/. 
  12. ↑ "A pariah regime used a Cyprus middleman in bid to evade oil-industry sanctions - ICIJ" (in en-US). 2023-11-15. https://www.icij.org/investigations/cyprus-confidential/syria-oil-american-equipment-nov-cyprus/. 
  13. ↑ "German journalist dubbed the ‘Putin connoisseur’ had secret book deal with Russian oligarch - ICIJ" (in en-US). 2023-11-14. https://www.icij.org/investigations/cyprus-confidential/german-journalist-putin-documentary-cyprus-secret-payments/. 
  14. ↑ Amann, Susanne; Baumann, Sophia; Huppertz, Carina; Obermaier, Frederik; Obermayer, Bastian; Schober, Timo (2023-11-14). "(S+) Hubert Seipel: Journalist erhielt Hunderttausende Euro aus Russland" (in de). Der Spiegel. ISSN 2195-1349. https://www.spiegel.de/wirtschaft/hubert-seipel-deutscher-reporter-erhielt-hunderttausende-euro-aus-russland-a-2c383028-2918-41ad-a8fd-26b1cf74369c. 
  15. ↑ "The spy, the lawyer and their global surveillance empire - ICIJ" (in en-US). 2023-11-15. https://www.icij.org/investigations/cyprus-confidential/israeli-predator-spyware-cyprus-offshore-intellexa/. 
  16. ↑ "New ICIJ report: Cypriot loopholes helped build one of world’s most notorious spyware firms" (in en). https://www.cbn.com.cy/article/2023/11/15/743102/new-icij-report-cypriot-loopholes-helped-build-one-of-worlds-most-notorious-spyware-firms/. 
  17. ↑ "US surveillance giant’s network of operations has subsidiaries in India" (in en). 2023-12-24. https://indianexpress.com/article/express-exclusive/us-surveillance-giants-network-of-operations-has-subsidiaries-in-india-9080622/. "Cyprus data shows details of Verint in India, including Cognyte which was under scanner for ‘targeting dissidents’" 
  18. ↑ "US surveillance giant’s network of operations has subsidiaries in India" (in en). 2023-12-23. https://article.wn.com/view/2023/12/23/US_surveillance_giant_s_network_of_operations_has_subsidiari/. 
  19. ↑ "Leaked documents expose payments linked to a murdered Croatian journalist, ICIJ partners report - ICIJ" (in en-US). 2023-12-14. https://www.icij.org/investigations/cyprus-confidential/leaked-documents-expose-payments-linked-to-a-murdered-croatian-journalist-icij-partners-report/. 
  20. ↑ Nightbridge, Carl (14 December 2023). "Assassination Plot Unraveled: Cyprus Confidential Files Reveal Owner of Company Linked to Croatian Magazine Founder's Murder | USNN – USNN Breaking National News Every 20 Minutes 24/7/365". https://usnn.com/assassination-plot-unraveled-cyprus-confidential-files-reveal-owner-of-company-linked-to-croatian-magazine-founders-murder/. 
  21. ↑ "Alleged Hamas financier holds stake in Cyprus company that mines Egyptian gold, leaked files reveal - ICIJ" (in en-US). 2023-12-20. https://www.icij.org/investigations/cyprus-confidential/alleged-hamas-financier-holds-stake-in-cyprus-company-that-mines-egyptian-gold-leaked-files-reveal/. 
  22. ↑ "Bin Laden, Hamas and the Sudanese money man" (in en). 21 December 2023. https://edition.cnn.com/2023/12/21/middleeast/hamas-financing-abdelbasit-hamza-intl/index.html. 
  23. ↑ 23.0 23.1 23.2 "Cypriot president pledges government probe into Cyprus Confidential revelations - ICIJ" (in en-US). 2023-11-15. https://www.icij.org/investigations/cyprus-confidential/cypriot-president-pledges-government-probe-into-cyprus-confidential-revelations/. 
  24. ↑ "Texts adopted - Effectiveness of the EU sanctions on Russia - Thursday, 9 November 2023" (in en). 13 November 2023. https://www.europarl.europa.eu/doceo/document/TA-9-2023-0397_EN.html. 
  25. ↑ "Lawmakers call for EU crackdown after ICIJ’s Cyprus Confidential revelations - ICIJ" (in en-US). 2023-11-23. https://www.icij.org/investigations/cyprus-confidential/lawmakers-call-for-eu-crackdown-after-icijs-cyprus-confidential-revelations/. 
  26. ↑ "EU: Lawmakers call for EU crackdown after ICIJ’s Cyprus Confidential revelations" (in en). 2023-11-24. https://www.ifcreview.com/news/2023/november/eu-lawmakers-call-for-eu-crackdown-after-icij-s-cyprus-confidential-revelations/. 
  27. ↑ Solutions, BDigital Web. "Finance Minister perturbed over 'Cyprus Confidential'". https://knews.kathimerini.com.cy/en/news/finance-minister-perturbed-over-cyprus-confidential. 
  28. ↑ "US agencies to deploy team to island amid 'Cyprus Confidential' revelations" (in en-GB). 2023-12-01. https://cyprus-mail.com/2023/12/01/us-agencies-to-deploy-team-to-island-amid-cyprus-confidential-revelations/. 
  29. ↑ Presse, AFP-Agence France. "Cyprus Says US Experts To Help Probe Russia Sanction Busters" (in en-US). https://www.barrons.com/news/cyprus-says-us-experts-to-help-probe-russia-sanction-busters-02c8edff. 
  30. ↑ "FBI called in to help Cyprus investigate Russian sanctions dodging - ICIJ" (in en-US). 2023-12-04. https://www.icij.org/investigations/cyprus-confidential/fbi-called-in-to-help-cyprus-investigate-russian-sanctions-dodging/. 
  31. ↑ "Cyprus Confidential: All EU countries must close loopholes for corruption" (in en). https://www.greens-efa.eu/en/article/press/cyprus-confidential-all-eu-countries-must-close-loopholes-for-corruption. 



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