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In October 1931, notorious American gangster Al Capone was sentenced to 11 years in prison on five counts of tax evasion by the federal justice system, marking a pivotal moment in organized crime history in the U.S.
According to Yiannis Ioannou's article published in Kathimerini Cyprus in Greek, the Internal Revenue Service (IRS) succeeded where the FBI and Illinois state police had failed, using irrefutable evidence to bring Capone to justice.
Fast forward to September 15-19, 2024, a team of experts from the IRS Criminal Investigation Division is visiting Cyprus. This visit highlights the strengthening of bilateral relations between Nicosia and Washington and underscores the U.S. commitment to modernizing and enhancing the capabilities of Cypriot institutions in combating organized economic crime.
The U.S. Embassy in Nicosia announced that the visit will facilitate discussions on emerging money laundering tactics and other financial crimes affecting both countries. It will also address law enforcement techniques to tackle these issues. The U.S. Ambassador to Cyprus, Julie Fisher, noted that the visit is part of ongoing efforts to bolster cooperation, training, and information exchange with international partners to combat illegal economic activities.
The presence of IRS experts in Cyprus not only aims to enhance coordination on transnational economic crime but also focuses on transferring know-how, best practices, and improving inter-state collaboration on money laundering and economic crimes. Recent U.S. sanctions against Cypriot individuals and entities reveal U.S. priorities, including reducing Russian influence in Cyprus's economy, preventing financial support for Russia’s war efforts, and closing the controversial "golden passports" scheme linked to Russian oligarchs.
This collaboration reflects the broader U.S. interest in Cyprus's institutional and economic reform, especially as Cyprus continues to align more closely with Euro-Atlantic interests. Key questions remain regarding how effectively Cyprus will adapt to these expectations and the potential implications of ongoing and future investigations involving U.S. and Russian connections.
