Filenews 13 January 2024 - by Fanis Makrides
US Federal Bureau of Investigation (FBI) operational agents with financial crime training will be in Cyprus until next month to assist in the criminal investigation of cases of possible sanctions circumvention by foreign investors through domestic financial services companies.
This was reported by an authoritative source of information to "F", which, due to its position, has an insight into the research work of competent services of the Republic of Cyprus so far in relation to sanctions. As he clarified, speaking to our newspaper, "a team of Americans had contacts in Cyprus around the beginning of December to make preliminary contacts in order to launch the investigation."
He added, however, that "the members of the FBI, who are estimated to come to Cyprus by February, have operational experience and training." He explained that "the contacts that are taking place now are aimed at these specialized FBI officers upon their descent to our island to immediately go deep and substantially assist in shedding light on the cases."
The same source told us that until the end of this week, officials of the US Embassy in Nicosia had meetings with officials of competent services and departments of the Cypriot State in order to prepare the ground for the arrival of FBI operatives.
They reportedly had a meeting last Thursday with the Unit for Combating Cover-Up Offences (MOKAS). Although there is no official information on the matter, information indicates that identical contacts have been made since December with the Financial Crime Investigation Bureau (GDOE). The GDOE is the competent department that conducts the criminal investigation of these cases (subordinate to the Combat Department of the Police Headquarters).
As we have been told, what they want to ensure on the part of the US embassy is that there will be proper cooperation between the FBI team of investigators and the competent departments and services of the Republic, so that with their arrival there will be the appropriate results in a short period of time.
The above information is in line with what the deputy government spokesman, Yiannis Antoniou, had reported at the end of November in the wake of the revelations of the consortium of investigative journalists ICIJ. Among other things, the media network had cast shadows over the transfer of investment capital from Alexei Mordashov ($1.4 billion) to another person via Cyprus on the day he was sanctioned by the European Union. The President, Nikos Christodoulides, shortly after what came to light, had announced that he had applied to a foreign country in order to assist with know-how in the investigations on Cypriot territory. As Mr. Antoniou had revealed on 30/11, President had approached the US, adding that the assistance will be provided by an FBI team. He had clarified that with the arrival of an FBI team in the coming days, the terms of employment of investigators "and the degree of access they will have to confidential information and security systems" would be shaped. He also said that the descent of the US agents is taking place within the framework of Cyprus-US cooperation and that part of the expenses will be paid by the Republic of Cyprus. A few days later (3/12) it became known that FBI members had visited Cyprus.
30 cases, six with oligarchs
The Cyprus Police – and specifically the Financial Crime Investigation Office (DGOI) – is currently examining 30 cases of possible sanctions violations through Cypriot administrative/financial service providers. We detail the data based on official information:
> Some of them, according to official data released by the spokesperson of the Corps, Christos Andreou, were brought to the attention of the Police after the transactions of the persons involved had taken place, while in other cases there was a freezing of their money or share capital.
> Of these cases, some were reported in late 2022, some in early 2023, and most between April and July 2023.
> The investigation into five has been completed. In three of them, no criminal offence was found.
> For the other two, the General Prosecutor's Office sent back the investigative file to the police with instructions for additional examinations. Latest information from "F" indicates that the investigative work is coming to an end.
> Another five cases are in the final stages of investigation by the police. Among them is the one case of Mordashov highlighted by the ICIJ consortium.
> The journalistic revelations implicated six oligarchs in possible sanctions violations. The Cyprus Police had already launched a criminal investigation into four of them before the reports.
> Of the 30 cases investigated by the GDOE, only two were brought to the attention of the Cypriot authorities from abroad. The remaining 28 complaints, according to an official police position, have been made by Cypriot bodies, financial institutions, MOKAS and the Ministry of Finance.
Mordashov was accused of transferring shares 14 days after the sanctions
- The case was revealed in the context of an agreement concerning the tourism industry – A Cypriot company had an active role
"F" information about Alexei Mordashov reports that the Russian oligarch had been reported to the Police for transferring shares that belonged to him, 14 days after the imposition of sanctions against him by the European Union (28/2/2022). That complaint has nothing to do with what ICIJ disclosed about that entrepreneur and the transfer of investment capital.
As our newspaper had revealed on November 22, evidence and allegations transmitted to MOKAS in spring 2023 indicated that Mordashov in mid-March 2022, that is, two weeks after he was included in the EU sanctions list (28/2/2022), transferred shares of his business entity to another executive of his company.
This company, which had the 58-year-old tycoon as its beneficial owner, attempted to implement a deal in Cyprus concerning the tourism industry, using another Cypriot corporate entity. In other words, the complaint, in addition to leaving Mordashov exposed for circumventing sanctions, also targeted a company based on our island.
This particular case had been reported in May 2023 to the Police by the Cyprus Bar Association, while MOKAS had also made a report to the Police Force.
Mordashov's other case is the one highlighted by the international consortium of journalists (14/11/2023). The steel magnate was alleged to have transferred an investment fund worth $ 1.4 billion to another person on the day of the restrictive measures imposed by the European Union (28/2), without, of course, clarifying whether there was illegality. The ICIJ report said that "PwC helped Alexei Mordashov, one of Russia's richest industrialists, move a $1.4 billion investment fund out of his name in order to evade EU sanctions." This case, according to information published by "F", was brought before the prosecuting authorities by ICPAC in July 2022. A spokesman for Mordashov had categorically denied there had been a violation of sanctions. At the same time, sources close to Cypriot PwC claimed, speaking to "F", that any criminal investigation of the matter does not concern the audit firm. This position was also confirmed by the Ministry of Finance.
