Cypriot and Russian authorities are seen to be rekindling their alliance. In an attempt to curb the recent renewed surge in Russian money flowing into Cyprus, basically in search for a safe haven. Following the recent bout of economic issues that Russia faced; falling oil prices, western sanctions and a weak currency, many wealthy individuals from the oil rich nation have sought to find safety for their money.
Another reason is to seek tax protection, as Cyprus has always been a preferred destination for wealthy Russian individuals, due to relaxed laws surrounding tax as well as financial assets in the Island country.
This is evident from a recent announcement by the Cyprus Securities and Exchange Commission (CySEC), stating that an updated Memorandum of Understanding (MoU) has been signed with the Bank of Russia. This signing took place in Moscow, between the Governor of the Bank of Russia, Mrs. Elvira Nabiullina and CySEC chairwoman Mrs. Demetra Kalogerou. Both presidents of the representing countries were present during the signing. The new deal updates the platform for both financial regulators to tackle securities and financial crimes.
Moreover, the Federal Financial Markets Service (FFMS) received additional functions from the Russian monetary authority, as the Central Bank now resumes general oversight of the banking and securities sectors. The new anti-money laundering and tax-evasion control campaign launched by the both authorities will ensure greater transparency in the financial system of both countries.
As Russian and Cypriot regulators enter new partnership, there will likely be a backdrop in Cyprus’ status, due to the evident offshore zone of the Russian Ruble.