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Cyprus PIO: News Update in English, 02-07-29
From: The Republic of Cyprus Press and Information Office Server at <http://www.pio.gov.cy/>
Monday, 29 July 2002
CONTENTS
- [01] Direct talks on Cyprus continue
- [02] Cyprus Central Bank refutes claims for being involved in money
laundering
[01] Direct talks on Cyprus continue
The direct talks on the Cyprus problem continued on Friday, 26 July 2002,
in the morning with another meeting between the President of the Republic
Mr Glafcos Clerides and the Turkish Cypriot leader Mr Rauf Denktash, in the
presence of the UN Secretary General's Special Adviser on Cyprus Mr Alvaro
de Soto. Present at the talks were the members of each side's delegation.
The regular meetings between the President and Mr Denktash are taking place
under the aegis of the United Nations in the framework of direct talks for
finding a solution to the Cyprus problem.
[02] Cyprus Central Bank refutes claims for being involved in money
laundering
The article entitled "Defiant Cyprus bank that helped fund two wars" which
appeared in the Financial Times of 25 July portrays the relationship
between Yugoslavia and Cyprus during the years when UN sanctions against
Yugoslavia were in force in a manner which is at odds with reality.
The Central Bank of Cyprus refutes any claim that knowingly it was involved
in sanctions busting and money laundering. Cyprus had scrupulously adhered
to the implementation of sanctions against Yugoslavia as contained in the
relevant Security Council Resolutions. As a result of this adherence, more
that US$400 m. of Yugoslav state funds with banks in Cyprus were subjected
to freezing action.
Cyprus's commitment to fight money laundering has been praised and
commended by international organisations and fora such as the Council of
Europe, the Financial Stability Forum and the Financial Action Task Force
which having evaluated from time to time the legislation, regulations and
procedures for combating money laundering found them to be thorough, and in
line with internationally accepted standards and principles.
The bulk of Yugoslav cash came to Cyprus after the UN sanctions had been
withdrawn, i.e. in 1995 and subsequently. For the rest, which involved the
period of sanctions, the Central Bank of Cyprus, based on the information
available at the time, was satisfied that this money was not used for trade
involving Yugoslavia or transfers to personal accounts of Yugoslav
officials or arms trading or other transactions prohibited under UN
sanctions. Later with the fall of the Milosevic regime and based on the
very close cooperation between the Cypriot Authorities with the Prosecutor
of the International Criminal Tribunal for the former Yugoslavia and the
new government in Belgrade it has been possible to establish that part of
the money brought into Cyprus might have been used in ways violating the UN
sanctions. It is stressed however that despite the best efforts of the
Cypriot Authorities at the time, it would not have been possible to have
known of this then.
It is highlighted that according to the Torkildsen report the money coming
to Cyprus emanated from Yugoslav customs revenues. It is therefore clear
that this money was not generated from criminal activities, and it is out
of the question to associate it with money laundering.
From the Republic of Cyprus Press and Information Office (PIO) Server at http://www.pio.gov.cy/
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