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Reports of suspicious transactions in Cyprus have risen sharply in 2023, reaching levels similar to those in 2021, as per Kathimerini's Dorita Yiannakou.
According to data from the Financial Intelligence Unit (MOKAS), 2,396 suspicious transactions were reported this year, a 26% increase compared to 2022, which had seen a decrease in reports. These reports consist of 513 Suspicious Transaction Reports (STRs) and 1,883 Suspicious Activity Reports (SARs). For comparison, in 2021, the total was slightly higher at 2,499 reports.
Most of the reports in 2023 were cross-border transactions flagged by other European financial intelligence units, and the gambling industry in Cyprus saw a significant rise in suspicious activity reports. E-money institutions also saw a spike in reports, while banks saw a slight decrease. Meanwhile, sectors like law firms and accounting firms saw more suspicious transactions flagged this year.
In terms of financial actions, over €25 million has been frozen by Cypriot authorities since January 2024 as part of ongoing investigations into money laundering and other financial crimes. This includes cash, vehicles, real estate, and valuables. A substantial part of this amount (€18 million) relates to freezing orders requested by foreign countries.
MOKAS has forwarded 27 cases to the police for investigation in 2024, covering offenses like money laundering, fraud, sanctions violations, and even drug trafficking and terrorism. Some cases have led to criminal charges, while others are still under investigation.
To strengthen its efforts against financial crime, MOKAS is collaborating with private and public sectors. One initiative involves working closely with law enforcement and banks to better identify and address high-risk money laundering and terrorist financing activities. Additionally, MOKAS is adopting new technology to track illicit funds, especially as cryptocurrencies and fintech become more prevalent.
In 2023, MOKAS also began producing strategic analysis reports to better understand the risks of money laundering in Cyprus, with a particular focus on human trafficking and corruption. One notable case involves the theft of a historical church icon from Cyprus’s occupied territories, which has led to an international investigation involving cooperation with Slovak authorities.
These efforts highlight Cyprus's commitment to tackling financial crime and improving transparency in its financial sector.
