Tracing, freezing and confiscating the proceeds of crime in Cyprus

Abstract

Purpose As a dynamic business and financial centre, the Republic of Cyprus is called upon to protect its economy and society from money laundering and criminal infiltration. To address these risks, the Republic of Cyprus has developed a comprehensive legal framework in compliance with the relevant international and EU standards. The purpose of this paper is to critically examine the legislative tools for tracing, freezing and confiscating the proceeds of crime in the Republic of Cyprus with special reference to their strengths, weaknesses and compatibility with the relevant international and EU norms. Design/methodology/approach This paper draws on legal scholarship, jurisprudence, reports and other open source data to analyse important legislative developments in Cyprus in the fields of tracing, freezing and confiscating the proceeds of crime. Findings The legislative developments that will be examined are Law 188(I)/2007, and its recent amendments which effectively target the proceeds of crime in Cyprus. Despite some weaknesses, the legislative provisions in Cyprus are compatible with international and EU norms on tracing, freezing and confiscation, while they promote international and EU cooperation in these domains. Originality/value Since the amendments of Law 188(I)/2007 came into force, this has been, to the best of the authors’ knowledge, the first comprehensive study examining the strengths and weaknesses of the legislative framework on asset tracing, freezing and confiscation, as well as its compatibility with international and EU standards.