Cyprus authorities have detained three individuals,
including a police officer, as part of an investigation into an alleged
criminal organization linked to money laundering, tax evasion, and extortion
targeting businesses such as forex firms.
Detentions and Alleged Criminal Activity
According to SigmaLive, citing the official news agency CNA as translated to English, the Nicosia District Court issued detention orders for three
suspects following police operations in Limassol. Two individuals, aged 49 and
50, will remain in custody for seven days, while a 45-year-old police officer
will be held for eight days.
Investigators told the court the group may have ties to a
person wanted by Greek authorities in cases involving cigarette and fuel
smuggling.
You may also like: CySEC Pulls Certification Registers as Scammers Exploit Licensing Details
Police are examining claims that the network offered “protection”
services to businesses, including forex companies. Authorities are also reviewing possible links between the
group and recent criminal acts, including arson and shooting incidents, the publication reported.
The investigation focuses on the police officer’s financial
activity between 2020 and 2026. After obtaining court orders, authorities
identified bank transactions that do not match his declared income. They also
found luxury vehicles with no clear financing records.
Financial Investigation and Seized Assets
The two other suspects face investigation for alleged
participation in the same criminal organization and for money laundering.
Authorities identified funds in bank accounts and four luxury vehicles that
appear inconsistent with their income. Around €200,000 in assets linked to the
pair has been frozen.
During the Limassol operations, police seized property
valued at over €420,000, including five luxury vehicles and other items from
the suspects’ residences. The suspects did not object to their detention
orders.
Last year there was mounting scrutiny on the forex
sector in Cyprus, but no widely reported police-style raids comparable to the organized crime operation targeting businesses with alleged “protection”
schemes.
2025: Heavy Supervision, Allegations, but Not Raids
CySEC’s own 2025 review shows it ran around 600 inspections
on Cyprus Investment Firms, imposed roughly €2.3 million in fines that year,
and suspended or withdrew four CIF licences. Several cases were referred to
police, the Attorney General and the AML unit. These were supervisory and
enforcement measures rather than on-the-ground crackdowns involving arrests and
asset seizures at forex offices.
In parallel, Paphos mayor Phedonas Phedonos publicly alleged links between some Cyprus-based forex firms and Latin American drug cartels last year,
claiming Cyprus risked becoming part of a money-laundering network.
CySEC responded that it was collecting data and cooperating
with domestic and international authorities to decide whether a further
investigation was needed, and stressed that it enforces EU rules and applies
sanctions for breaches.
Interestingly, scammers have gone as far as hijacking public review platforms like TrustPilot and Google Business to pose as CySEC officials,
tricking investors into paying bogus “recovery” fees. It prompted the regulator
to warn that it never contacts individuals to request money and to roll out
social media monitoring tools that track multi‑language posts in real time so
it can quickly remove fake content and clamp down on these impersonation
schemes.
Cyprus authorities have detained three individuals,
including a police officer, as part of an investigation into an alleged
criminal organization linked to money laundering, tax evasion, and extortion
targeting businesses such as forex firms.
Detentions and Alleged Criminal Activity
According to SigmaLive, citing the official news agency CNA as translated to English, the Nicosia District Court issued detention orders for three
suspects following police operations in Limassol. Two individuals, aged 49 and
50, will remain in custody for seven days, while a 45-year-old police officer
will be held for eight days.
Investigators told the court the group may have ties to a
person wanted by Greek authorities in cases involving cigarette and fuel
smuggling.
You may also like: CySEC Pulls Certification Registers as Scammers Exploit Licensing Details
Police are examining claims that the network offered “protection”
services to businesses, including forex companies. Authorities are also reviewing possible links between the
group and recent criminal acts, including arson and shooting incidents, the publication reported.
The investigation focuses on the police officer’s financial
activity between 2020 and 2026. After obtaining court orders, authorities
identified bank transactions that do not match his declared income. They also
found luxury vehicles with no clear financing records.
Financial Investigation and Seized Assets
The two other suspects face investigation for alleged
participation in the same criminal organization and for money laundering.
Authorities identified funds in bank accounts and four luxury vehicles that
appear inconsistent with their income. Around €200,000 in assets linked to the
pair has been frozen.
During the Limassol operations, police seized property
valued at over €420,000, including five luxury vehicles and other items from
the suspects’ residences. The suspects did not object to their detention
orders.
Last year there was mounting scrutiny on the forex
sector in Cyprus, but no widely reported police-style raids comparable to the organized crime operation targeting businesses with alleged “protection”
schemes.
2025: Heavy Supervision, Allegations, but Not Raids
CySEC’s own 2025 review shows it ran around 600 inspections
on Cyprus Investment Firms, imposed roughly €2.3 million in fines that year,
and suspended or withdrew four CIF licences. Several cases were referred to
police, the Attorney General and the AML unit. These were supervisory and
enforcement measures rather than on-the-ground crackdowns involving arrests and
asset seizures at forex offices.
In parallel, Paphos mayor Phedonas Phedonos publicly alleged links between some Cyprus-based forex firms and Latin American drug cartels last year,
claiming Cyprus risked becoming part of a money-laundering network.
CySEC responded that it was collecting data and cooperating
with domestic and international authorities to decide whether a further
investigation was needed, and stressed that it enforces EU rules and applies
sanctions for breaches.
Interestingly, scammers have gone as far as hijacking public review platforms like TrustPilot and Google Business to pose as CySEC officials,
tricking investors into paying bogus “recovery” fees. It prompted the regulator
to warn that it never contacts individuals to request money and to roll out
social media monitoring tools that track multi‑language posts in real time so
it can quickly remove fake content and clamp down on these impersonation
schemes.
