A video leaked on 8 January shows people pretending to be investors from Europe meeting Cypriot officials to discuss a fake €150 million business deal. This highlights problems in how Cyprus attracts foreign money to grow its economy.
Instead of using official channels, unofficial middlemen – like business advisors and property developers – connected the fake investors to government figures, raising fears of improper influence.
The case is now with an independent criminal investigator, Andreas Paschalides, who has three months to examine all facts and laws. No guilt is assumed yet; police and courts will decide.
Why no background checks occurred
Normally, banks and regulated firms must do “Know Your Client” (KYC) checks – verifying who someone is and where their money comes from – to cease crime.
In this case, the people involved are not legally required to do these checks. Cyprus law from 2007 on money laundering does not classify business advisors or land developers as “supervised”, so no mandatory reviews happened, even though they act as key conduits via global seminars and roadshows. Articles 2A and 59 impose no oversight, thus no legal duty for Due Diligence or KYC, even in active investment roles.
Official way to attract investments
Cyprus has Invest Cyprus, a government agency fully owned by the Finance Ministry, as the proper “front door” for foreign investments. It guides investors from first contact to setup and beyond, like a one-stop service. In 2023, it helped bring €3.2 billion in direct investments and opened over 2,500 jobs.
A new Business Facilitation Centre, opened in May 2025 by the President, simplifies processes with a single “Project Officer” for big deals, promising approvals in 12 months.
New laws for checking risky foreign investments start in April 2026, leaving a temporary gap for now. Parliament passed the 2025 FDI Control Law per EU 2019 rules. Until then, non-EU investments face looser rules – despite video’s “fake” EU investors.
The 2022 Transparency in Public Decisions Law mandates Independent Anti-Corruption Authority register, but no Due Diligence/KYC on represented entities. Sources stress this limits transparency to declarations, not origin checks.
Experts call for oversight by bodies like the bar association or securities commission to ensure transparency.
What is influence peddling?
This is not direct bribery but selling access or promises of sway over officials for gain. Cyprus follows a Council of Europe treaty making it illegal to boast about connections to decision-makers, even if no favour happens. It protects public trust by closing “grey zones” where personal ties blur into backroom deals.
Lawyer Simos Angelides noted possible crimes like bribery or abuse if the video is real, but stresses full investigation first.
Also read: Video leak: Cyprus seeks Europol aid
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