On Tuesday, November 14, the YouTube channel of the International Consortium of Investigative Journalists (ICIJ) published a scandalous video with Cyprus as the main subject.
The report entitled Cyprus Confidential ("Secrets of Cyprus") is devoted to corruption and organized crime in the island state.
It is worth noting that more than 270 journalists from 68 news outlets based in 55 countries around the world took part in the large-scale investigation, which lasted about eight months. Also working closely with ICIJ were the Center for Corruption and Organized Crime Research (OCCRP), the German company Paper Trail Media, and the non-profit organization Distributed Denial of Secrets.
According to the consortium, the journalists received a large number of documents confirming manipulations on behalf of oligarchs in order to circumvent sanctions imposed on them, data on trusts in which the ultimate beneficiaries are not visible, on numerous violations of the conditions of the "golden" passport program, as well as superficial checks of unscrupulous investors, as a result of which they escaped criminal liability.
The video claims that the report is based on more than 3.6 million files provided by anonymous sources on the activities of six Cypriot company registration and consulting firms and a Latvian firm that allegedly sells Cyprus corporate registry documents through the i-Cyprus website. However, it was the Cypriot unit of the well-known consulting firm PwC that took center stage.
Together, reporters uncovered how PwC Cyprus collaborated with small firms specializing in setting up shell companies and providing shell directors to dozens of oligarchs. The documents show that PwC Cyprus used offshore structures to hide the assets of Russians caught up in Western and Ukrainian sanctions since 2014. The documents include more than 60 oligarchs and at least 71 clients who have been sanctioned since February 2022.
Among other things, the investigation says PwC Cyprus and other consulting firms helped one of Russia's most powerful oligarchs, Alexei Mordashov, transfer his £1 billion stake in Europe's largest tour operator Tui to a related person on the day he was hit by EU sanctions.
Cypriot companies also helped make offshore payments worth tens of millions of euros to Russian oligarch Roman Abramovich, probably in breach of accounting rules. Some of them relate to the period when Abramovich owned the Chelsea soccer club.
The report, based on financial documents, also sheds light on the oligarchs' lavish lifestyles: their private concerts with Amy Winehouse, the Red Hot Chili Peppers and other famous rock stars, their superyachts, and priceless art collections. ICIJ's analysis of the files revealed some 800 firms registered in locations that allow oligarchs to hide their assets. They include more than 650 Cypriot companies and trusts.
In response to an inquiry by the International Consortium of Investigative Journalists, the Cypriot government said it was receiving technical support from the British government to set up an EU sanctions tracking unit, which is due to become operational next year. Cyprus also plans to submit a report by the end of November on how its authorities are investigating financial crimes related to evading Western sanctions.
The Cypriot Finance Ministry separately said it had launched a criminal investigation into one of the transactions uncovered by investigators - the transfer of Mordashov's stake in tour operator Tui. In turn, representatives of Mordashov and PwC Cyprus said they were unaware of the criminal investigation.
Finally, the President of Cyprus emphasized that he intends to look into the situation. Christodoulides promised to strengthen control over the movement of capital through companies on the island.