The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has included two Cyprus-based businessmen in its latest list of sanctioned individuals, citing links to transnational criminal organisations. Both men, originally from China and Cambodia, acquired Cypriot citizenship through the now-defunct Cyprus Investment Programme (CIP).
However, Politis has confirmed that no steps have been taken by the Cypriot Ministry of Interior to revoke their 'golden passports'. Nor are any such steps planned, due to a legal loophole in the current legislation, which only allows for citizenship revocation when sanctions are imposed by the EU or the United Nations, not by the United States.
As a result, the two individuals will retain their Cypriot citizenship, despite being named in US sanctions for alleged involvement in serious criminal activity.
Who are they?
According to OFAC’s official announcement, Chen Zhi and Yang Jian have had their US-based assets frozen, and US individuals or entities are prohibited from engaging in transactions with them.
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Chen Zhi, a Chinese-Cambodian tycoon and chairman of the Prince Group, who operates in sectors including real estate development and luxury goods in Cambodia. Politis has learned that he received his Cypriot citizenship via a Cabinet decision under former President Nicos Anastasiades on 5 November 2015. OFAC lists him due to his ties to transnational criminal networks and alleged human rights violations in Cambodia - activities linked to the Prince Group and the Jin Bei Group.
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Yang Jian, a Chinese entrepreneur involved in real estate and investment, was granted a Cypriot passport on 31 January 2018, also by Cabinet decision. His inclusion on the OFAC list is due to his connection with a global criminal organisation.
Legal loophole in Cyprus
The legal framework governing revocation of Cypriot citizenship is outlined in Article 113 of the Civil Registry Law (Law 141(I)/2002). It states that the Council of Ministers may revoke the citizenship of naturalised individuals within ten years of naturalisation, provided they are placed under sanctions - as specifically defined by the implementing regulations under Articles 111A and 117.
Under those regulations, citizenship may only be granted if the applicant (and their family members) do not fall under the following categories:
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Persons whose assets are frozen within the European Union.
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Persons subject to sanctions imposed by the EU or the UN, either currently or within the 12 months prior to application.
Because the two individuals were sanctioned only by the United States, the current legislation does not permit the revocation of their citizenship.
A Ministry of Interior official told Politis that both individuals are under continuous monitoring, and should new evidence emerge suggesting they meet the legal criteria for revocation, the Ministry would immediately initiate the appropriate procedures.
Since the termination of the Cyprus Investment Programme in 2021, the government has decided to revoke the citizenship of 360 individuals, comprising 101 investors and 259 family members. Of these, the revocation process has been completed for 112 individuals, and their identity documents (passports and ID cards) have been formally cancelled.