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- Police said the inquiry began on their own initiative, is being conducted with other bodies, and could take about six months.
- MPs questioned whether Cyprus’ supervisory mechanisms can prevent similar cases, while officials cited regulatory improvements since 2017.
- ICPAC said it is reviewing the reports, but any criminal matter must be referred to law enforcement; a licence linked to the report was revoked in 2023.
- MOKAS said it received no report on the case, while the Central Bank, tax authorities and other regulators are reviewing whether their powers were engaged.
Cyprus police are assessing allegations raised by a BBC investigation into the management of Russian billionaire Roman Abramovich’s assets through Cypriot companies, as authorities examine whether criminal offences may have been committed.
The issue was discussed by the House Institutions Committee on Wednesday, where representatives of supervisory authorities acknowledged the seriousness of the reports while highlighting changes to Cyprus’ regulatory framework over the years.
Police said they had launched an investigation on their own initiative and were gathering information in cooperation with other competent bodies. A police representative estimated that the process could take around six months.
Although the events described in the reports date back several years, police told MPs that potential criminal offences had not become time-barred, leaving a legal basis for an investigation.
A representative of the Justice Ministry said the information was being assessed and that a criminal investigation would follow if evidence of offences emerged.
MPs demand scrutiny of supervisory authorities
Committee chairman and DISY MP Demetris Demetriou said the meeting was intended to examine the effectiveness of supervisory mechanisms, rather than simply acknowledge that the events took place in the past.
“We are not here to say that these things happened years ago. We are here to exercise supervisory control. Otherwise, we would be holding group psychotherapy, and I am not prepared to do that,” he said.
ALMA MP Irene Charalambidou noted that the case dates back to 2006, when Cyprus operated in a different financial environment.
She called on the authorities to explain whether current procedures could prevent similar cases and whether weaknesses identified in the past had been addressed.
She also questioned whether the Republic of Cyprus could assure the public that comparable revelations involving more recent activities would not emerge in the future.
Allegations raise questions over past controls
Authorities said the BBC reports had prompted concern and that they had contacted companies mentioned in the investigation to request information and relevant documents.
However, obtaining records relating to events from many years ago can be difficult. Some supervisory bodies also lack jurisdiction over events that occurred before they were established.
The discussion raised concerns about the auditing profession after reports alleged that an audit firm had encouraged a client to backdate documents to obtain a tax advantage or change how information was presented in financial statements.
Authorities said that similar conduct, if established today, could trigger disciplinary proceedings and sanctions.
Representatives also pointed to improvements in audit oversight since 2017, when the relevant supervisory arrangements began. They said audit quality and compliance practices had improved, making comparable incidents more difficult to occur.
However, they did not rule out the possibility of similar cases emerging again.
Accountants’ body says criminal investigation is not its role
The Institute of Certified Public Accountants of Cyprus (ICPAC) said it was examining the reports and taking steps under the existing regulatory framework.
A representative explained that anti-money laundering controls follow specific standards, with procedures reviewed and updated annually. Supervisory measures include more frequent inspections, remote monitoring, questionnaires and risk assessments.
However, ICPAC does not have the authority to conduct criminal investigations. If information suggests a criminal offence may have occurred, the matter must be referred to the competent law enforcement authorities.
The representative stressed that disciplinary proceedings are separate from criminal investigations and disclosed that a licence belonging to a person mentioned in the BBC report had been revoked in 2023.
No report received by financial intelligence unit
Cyprus’ Unit for Combating Money Laundering, known as MOKAS, told the committee that it had not received a report concerning the specific case.
A representative said the unit could assist the police if requested, but it did not have the authority to conduct a criminal investigation itself.
The Tax Department said it cooperates with supervisory authorities and provides information when requested. However, the Tax Commissioner pointed to time limits affecting which tax years can be examined.
Central Bank to examine possible involvement of banks
The Central Bank of Cyprus said it was reviewing the published information to determine whether any issues fell within its supervisory responsibilities.
It will examine whether Cypriot banks were involved in the case. No such involvement has been established or announced so far.
The Central Bank said it could require corrective measures or impose administrative fines if violations were identified.
Its representative also highlighted changes to the banking system since the financial crisis, including stronger regulation, enhanced supervision and additional staffing.
The Cyprus Securities and Exchange Commission said it now operates under a strengthened regulatory framework with expanded powers. However, it cannot bring criminal prosecutions. Submitting false information to the commission constitutes a criminal offence, its representative said.
The Cyprus Bar Association also said reports concerning the possible involvement of professionals in money laundering or other illegal activities were of concern. It has powers to impose significant administrative fines where violations fall within its remit.
Audit reports also raised during meeting
The Audit Office referred to work it had carried out on the banking sector and efforts to combat money laundering.
It said a relevant report had been published in March, followed last Friday by a parallel audit conducted in cooperation with four other audit institutions from EU member states.
The committee meeting highlighted the different powers and limitations of the authorities involved, as well as the need for coordination.
The next step is to assess the specific allegations and establish whether any offences occurred, while determining whether Cyprus’s current supervisory mechanisms are sufficient to prevent similar cases.
The BBC allegations have not, in themselves, established criminal wrongdoing by the individuals or companies concerned.
Also read: BBC–OCCRP probe links Deloitte Cyprus to Abramovich assets and backdated documents
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