Four years have passed since Judge Myron Nikolaos published his report on the corruption scandal surrounding the 'golden passport' programme, yet the Cypriot police investigation is still ongoing. The reasons for the delay include the complexity of the cases, the need to obtain information from abroad and ongoing legal disputes.
Although some cases have already been referred to court, the number of cases under investigation is significantly lower than expected. It should be noted that Nikolaou's report documented dozens of instances of Cypriot passports being issued to foreign businesspeople and investors who were under investigation or wanted in their own countries. In many cases, intermediaries and government agencies that approved their citizenship did not even conduct the most basic checks on the applicants' reliability. Consequently, individuals with criminal records were able to obtain Cypriot passports and the right to travel freely within the European Union.
The government has revoked illegally issued passports
Following high-profile revelations, the Cypriot government set up a special commission under the Cabinet of Ministers to begin revoking citizenships issued illegally.
The Cyprus Legal Service studied Nikolaou's report and, in 2021, instructed an investigation into dozens of suspicious cases. More than 100 investor files were handed over to the police to check for criminal offences relating to the acquisition of Cypriot citizenship.
A special investigative unit was reinforced with experts who had previously been involved in probing the collapse of the Cypriot economy. However, even with the expanded staff, progress is slow due to the complexity and international nature of the cases.
What is known about the current progress of the investigations?
To date, fewer than ten complete reports covering over 12 cases of suspicious naturalisations have been sent to the Office of the Cyprus Attorney General. Some cases have already been heard in court, some are ongoing, and one has been referred back for retrial following an acquittal.
The most high-profile case, which has not yet been heard in court, involves the Paphos-based law firm of Andreas Dimitriadis.
A meeting to review all active investigations, their current status and next steps is scheduled for early November at the Attorney General's Office. Some cases are stuck at procedural stages, for example due to appeals against search warrants or delays in obtaining telecommunications data. Several investigations are still awaiting documents from abroad, while a number of cases are nearing completion.
Golden passport programme: the end of an era
Cyprus's investment citizenship programme was finally shut down in 2020 following an international scandal and the publication of journalistic investigations, including by Al Jazeera, which revealed that wealthy foreigners could obtain Cypriot passports by circumventing the law.
According to the European Commission, Cyprus issued more than 7,000 passports under this scheme, attracting billions of euros in investment to the country, but seriously undermining confidence in the Cypriot legal system.
Today, the Cypriot authorities are seeking to restore the country's reputation by tightening controls on the issuance of temporary residence permits and investment visas, as well as strengthening the system for verifying investors' sources of income.