Cyprus’ entanglement in the geopolitical tension between the US and Russia, one of the island’s core commercial partners, could have serious implications for the economy.
Interviews which were carried out with numerous stakeholders highlight a rising concern in the ranks of entrepreneurs and professionals in Cyprus. This comes to light over the effect of stricter AML and terrorist financing practices being applied, amongst fears that recent US pressure on Cyprus’ business and financial service providers to take US sanctions more seriously, which may have a considerable impact on the economy.
However, some of the interviewees have argued that there are methods for Cyprus to adhere to both AML regulations and US sanctions on fears that its banks may lose access to the US dollar without upsetting the island’s large Russian business community. This is following Cyprus recently launched PR campaign to improve its image abroad in relation to combatting the laundering of illicit funds.