The Cyprus government on Tuesday stressed it was ready to explore whether there were grounds to begin criminal proceedings against sanctioned Cypriots who have been named by the US and UK for knowingly assisting Russian oligarchs to hide their assets.
“Cases where there have been violations of Cyprus’ law or EU sanctions will be brought before justice,” government spokesman Konstantinos Letymbiotis said.
With the government now in damage control mode after dozens of Cypriots and Cyprus-based companies were hit by sanctions from the US and UK last week, Letymbiotis called it a “complicated and unprecedented” case.
The sanctions on 23 Cypriots – 10 of which are Cypriot born – and 20 companies based in Cyprus, accuse them of knowingly assisting Russian oligarchs Roman Abramovich and Alisher Usmanov to hide their assets in complex financial networks.
The Cyprus Mail understands this may be the tip of the iceberg however, as US investigations have been underway into a number of other lawyer’s offices in Cyprus, which are expected to be sanctioned in the near future.
President Nikos Christodoulides has already spoken with high-ranking US officials, and expressed the country’s commitment to cooperate. He has also requested the evidence behind the sanctions so that Cyprus’ attorney-general can begin assessing the material.
Letymbiotis explained that while US and UK authorities have documented evidence, the investigation aims to explore whether the sanctioned individuals have committed any offences under Cyprus law.
But on Tuesday chairman of the Cyprus Bar Association Christos Clerides defended the lawyers involved, saying there is no evidence to support the claims. In fact, he went a step further and called the sanctions “an exaggeration”.
The Cyprus Mail understands there is no council decision adopting the chairman’s views.
Clerides also made an appeal to the banks, which have frozen all accounts, to allow the companies to carry out operational transactions, such as paying staff wages.
Bank of Cyprus chief compliance officer Marios Skandalis told the Cyprus News Agency that although Cyprus is obliged to follow EU and UN sanctions, banks tend to voluntarily adopt US and UK sanctions as well, as it affects the credibility of Cyprus’ banking system.
This has been rewarded by the increase in the number of US dollar correspondent banks from just one to four, he said.
Skandalis denied banks had overexaggerated in adopting the sanctions, saying that had they not moved to act the way they had “the very next day, US dollar clearing banks would have shut down and our economy would have faced problems.”
Lawyer Christodoulos Vassiliades, named on both the UK and US sanctions has denied the accusations, saying he is in contact with his lawyers to try and overturn the decision.
The bar association’s chairman said the sanctions are “a new philosophy” brought forth by the US and UK that aim to fight the very system that allows the oligarchs’ asset management.
“They (the lawyers) don’t manage the system anymore. It exists but it doesn’t mean there’s activities going on now.”
Clerides noted the reason the financial enablers were targeted with sanctions – including a travel ban and asset freeze – aim to ensure the asset management systems will collapse.
He said he has asked affected lawyers to prepare a report and added the bar association has not found any cases of “non compliance” from its members.
“I believe we will overcome this crisis.”
Contents of this article including associated images are belongs Cyprus Mail
Views & opinions expressed are those of the author and/or Cyprus Mail
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