Paphos Mayor Phedonas Phedonos has made strong allegations
that Cyprus has become part of an international money laundering network
involving Latin American drug cartels. Speaking on social media, the mayor
claimed that some Forex firms based in Cyprus are being used to launder drug
money through complex shell company networks in Latin America, KNEWS reported.
Mayor Demands Action on Forex Funds
He warned that Cyprus is no longer only a transit point for
drugs but is
now deeply involved in laundering proceeds from organized crime. The mayor
called on regulators to investigate the flow of funds and questioned why
financial authorities appear to allow large sums to move unchecked.
In response, the Cyprus Securities and Exchange Commission
(CySEC) issued a statement underscoring its regulatory role. A CySEC
spokesperson said:
“The foreign exchange (forex) market is a decentralised
network of banks, brokers and other financial institutions that facilitate
currency transactions. A market that is the biggest and most liquid in the
world where financial groups hold multiple licenses in different jurisdictions.”
“Whilst there is no central oversight body for the entire
forex market, CySEC’s responsibility as the national regulatory body is to
supervise domestic forex trading investment firms in Cyprus to ensure that they
are in strict compliance, among others, with the EU Markets in Financial
Instruments Directive (MiFID II) and the latest EU AML Directives and
Regulations. There are severe penalties and enforcement actions for
non-compliance.”
Cyprus Faces Scrutiny Over Financial Oversight
CySEC confirmed it is gathering information from domestic
and international bodies before deciding whether to open an investigation
related to the mayor’s claims. The regulator reaffirmed its commitment to
protecting investors and maintaining the integrity of Cyprus’s financial
markets, highlighting ongoing cooperation with European and global agencies.
The mayor’s allegations have stirred concerns about
potential weaknesses in oversight and the possibility of deeper connections
between organized crime and Cyprus’s financial sector. Authorities are now
under pressure to demonstrate transparency and take decisive action if
necessary.
Paphos Mayor Phedonas Phedonos has made strong allegations
that Cyprus has become part of an international money laundering network
involving Latin American drug cartels. Speaking on social media, the mayor
claimed that some Forex firms based in Cyprus are being used to launder drug
money through complex shell company networks in Latin America, KNEWS reported.
Mayor Demands Action on Forex Funds
He warned that Cyprus is no longer only a transit point for
drugs but is
now deeply involved in laundering proceeds from organized crime. The mayor
called on regulators to investigate the flow of funds and questioned why
financial authorities appear to allow large sums to move unchecked.
In response, the Cyprus Securities and Exchange Commission
(CySEC) issued a statement underscoring its regulatory role. A CySEC
spokesperson said:
“The foreign exchange (forex) market is a decentralised
network of banks, brokers and other financial institutions that facilitate
currency transactions. A market that is the biggest and most liquid in the
world where financial groups hold multiple licenses in different jurisdictions.”
“Whilst there is no central oversight body for the entire
forex market, CySEC’s responsibility as the national regulatory body is to
supervise domestic forex trading investment firms in Cyprus to ensure that they
are in strict compliance, among others, with the EU Markets in Financial
Instruments Directive (MiFID II) and the latest EU AML Directives and
Regulations. There are severe penalties and enforcement actions for
non-compliance.”
Cyprus Faces Scrutiny Over Financial Oversight
CySEC confirmed it is gathering information from domestic
and international bodies before deciding whether to open an investigation
related to the mayor’s claims. The regulator reaffirmed its commitment to
protecting investors and maintaining the integrity of Cyprus’s financial
markets, highlighting ongoing cooperation with European and global agencies.
The mayor’s allegations have stirred concerns about
potential weaknesses in oversight and the possibility of deeper connections
between organized crime and Cyprus’s financial sector. Authorities are now
under pressure to demonstrate transparency and take decisive action if
necessary.
This post is originally published on FINANCEMAGNATES.
