Cyprus has again come under parliamentary criticism in the United Kingdom regarding Russia sanctions. A British government report lists the island among jurisdictions used as intermediaries in suspected breaches of sanctions against Russia following the 2022 invasion of Ukraine.
According to the BBC, the reference appears in a report by the UK Office of Financial Sanctions Implementation (OFSI). The report states that more than 25% of suspected sanctions breaches reported by UK financial firms involve intermediary jurisdictions.
Besides Cyprus, the list includes the British Virgin Islands, Switzerland, the United Arab Emirates, Guernsey, Luxembourg, Austria, and Turkey.
Pressure in the House of Commons
Following the report, Labour MP Lloyd Hatton raised the issue in the House of Commons. He accused offshore financial centres, including the Channel Islands, of failing to prevent Russian money from moving through their systems.
“Time and again we see offshore financial centres linked to sanctions evasion. This is simply unacceptable,” Hatton said. He called for fully open public registers of beneficial ownership.
Guernsey and Jersey reject claims
The governments of Guernsey and Jersey rejected the accusations. Guernsey’s head of external relations, Steve Falla, said the island enforces sanctions “in full alignment with the United Kingdom”.
Jersey also dismissed the claims. It stated that no evidence shows the island poses an increased sanctions risk. The government added that Jersey ranks among the world’s top jurisdictions for transparency and cooperation, alongside the UK.
Debate over beneficial ownership transparency
Hatton repeated calls for publicly accessible registers of beneficial owners. He argued that authorities cannot properly trace suspicious funds without full transparency.
Jersey responded that UK law enforcement already has direct access to ownership data. Officials can obtain information within 24 hours, or within one hour in urgent cases. Jersey described these response times as among the best internationally.
Frozen assets and BBC findings
Data obtained by the BBC through freedom of information requests show that nearly £72 million in Russian assets have been frozen in Guernsey since the war began.
In addition, a 2023 BBC Newsnight investigation revealed links between a Russian oligarch and a company registered on the island.
Cyprus back in the spotlight
The inclusion of Cyprus in the OFSI report renews debate over the role of intermediary jurisdictions in global financial flows. It also highlights growing calls for stricter oversight, as sanctions against Russia remain a key pillar of Western policy.
Also read: Ankara’s “Steel Dome” raises concerns in Athens and Nicosia
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