Recent international operations led by Eurojust and Europol have exposed a troubling pattern: Cyprus continues to be used by criminal networks as a base for corporate structures that enable financial crime.
The latest case is a massive cryptocurrency fraud that saw perpetrators extract more than €600 million from investors worldwide and the sprawling scandal involving fake payment platforms affecting 4.3 million cardholders, have once again drawn attention to the murky flow of illicit money and the gaps that persist within Cyprus’ company registration and monitoring systems.
Despite years of reform and favourable assessments from international bodies, shell companies with no real activity and opaque ownership structures still operate on the island. The problem is not merely institutional - it is systemic. Cyprus remains, regrettably, an attractive destination for fraudsters.
While the country has taken steps towards greater transparency, due diligence cannot rely solely on legislative measures. What is required is robust supervision and coordination among law enforcement agencies, the Central Bank, the Unit for Combating Money Laundering (MOKAS), and the Registrar of Companies.
Particularly in relation to the Registrar, the full public disclosure of its database - ensuring unhindered access to company information - would provide an additional layer of accountability through scrutiny by the market and the media.
Without stronger mechanisms for monitoring and information sharing, Cyprus risks once again being labelled the “weak link” in Europe’s collective fight against financial crime.
The international scope of recent cases demonstrates that criminal networks are evolving faster than institutions. They operate through sophisticated digital platforms, complex corporate webs, and false financial fronts. Unless Cypriot authorities match that pace and expertise, they will continue to react after the fact - once the money has already crossed borders and accounts.
Transparency is not a luxury; it is a shield for the country’s credibility. The fight against corruption and money laundering should not be viewed as an external obligation, but as a national priority.
Cyprus can be a legitimate business hub - but it cannot afford to be a haven for fraud. The longer supervisory authorities delay proving this through concrete action, the harder it will be to rebuild the trust of European partners and international markets.