Cyprus performance on anti-money laundering issues

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cyprus banksSome European parliamentarians have voiced their concern about substandard anti-money laundering procedures in Cyprus and proposed to link improvements to bailout terms currently negotiated by Cyprus with Troika. This was mostly a hint that Cyprus is a safe haven for Russian money. In reality, according to some sources, Russians make about 90% of foreign clients of Cyprus banks. The Cyprus government has fired back saying that Cyprus is not worse than other EU countries and could even be better on following anti-money laundering rules and procedures and fully complies with EU standards and regulations. Cyprus was forced into a bailout by the Greek bond haircut. The Cyprus government reacted very slowly bringing forcing the country into a corner so that the country has to agree to all demands of Troika on the bailout terms and conditions. The Cyprus government have already started to implement some of Troika demands such as cutting headcounts at government offices and salaries of government workers, increasing VAT from 17% to 18% on January 14th, etc.