Cyprus has announced it will abolish a controversial passport scheme following an investigation by Al Jazeera that revealed how high-ranking politicians were willing to issue passports to convicted criminals.
The interior and finance ministries said in a statement posted in Greek on Twitter that the citizenship through investment programme in its current form will be abolished from November 1.
“The proposal was based on the long-standing weaknesses but also on the abusive exploitation of the provisions of the programme,” Tuesday’s statement said.
In addition, Cypriot Attorney General George Savvidis said an investigation into possible criminal offences would be launched.
“What has been published in the last few hours by the Al Jazeera news network is causing outrage, anger and concern among the people,” his statement read.
On Monday, Al Jazeera’s Investigative Unit released The Cyprus Papers Undercover, which showed the willingness of parliament speaker, Demetris Syllouris, and member of parliament, Christakis Giovanis (also known as Giovani in Cyprus), to aid and abet convicted criminals to obtain a passport through the Citizenship Investment Programme (CIP).
Weeks earlier, Al Jazeera released The Cyprus Papers, a cache of almost 1,400 documents showing Cyprus had granted passports to criminals convicted in their home countries and people wanted by Interpol in the previous years.
Following Tuesday’s announcement by the Cypriot government, Syllouris said he would abstain from duties from October 19 until government investigations had been completed.
Politicians implicated
Under the scheme, anyone who could afford to invest at least $2.5m in the Cypriot economy, usually through real estate, was able to obtain a Cypriot passport.
The programme has been regularly criticised by the European Union and anti-corruption NGOs, which have claimed the scheme increases the risk of money laundering through Europe’s financial institutions.
Posing as Billy Lee and Angie, Al Jazeera’s reporters went undercover, pretending to represent a Chinese businessman interested in acquiring a Cypriot passport.
However, time and again they were told that the sentence would not be a problem as long as enough money was invested – the implication being that the more their client invested above te $2.5m threshold, the easier he would find it to avoid restrictions.
MP Christakis Giovani, also one of the island’s most prominent real estate developers, told the undercover reporters he would ensure the deal was done.
“It’s not easy. But I can promise, we shall do the best. And I believe we have the experience,” Giovani said.
Parliamentary speaker Demetris Syllouris went even further, saying: “You can tell him that he will have, without mentioning my name or anybody else’s, full support from Cyprus. At any level – political, economic, social, everything – ok.”
These sentiments were echoed by several others, including a lawyer who said that it would even be possible to change the name on the passport, effectively changing the identity of the applicant.
They also said their dealings with our undercover journalists were intended to gather information to support a report to the authorities without “tipping them off”.
‘European values not for sale’
After Monday’s revelations, the European Commission said in a statement it had watched the revelations in disbelief.
“President [Ursula] von der Leyen was clear when saying that European values are not for sale,” the Commission said.
“The Commission has frequently raised its serious concerns about investor citizenship schemes, also directly with the Cypriot authorities. The Commission is currently looking at compliance with EU law of the Cypriot scheme in view of possible infringement proceedings.
“We are aware of the latest declarations of the government and expect the Cypriot competent authorities to thoroughly look into this case.”
“Today we have therefore renewed our call on the European Commission to not only take legal action against Cyprus, but submit a legislative proposal banning the practice altogether.
“If this film is not enough evidence for the need for a legal ban, then what is?”
Her colleague Sven Giegold said: “It is key that the EU takes over and that this means that the resident programme and the investment programme have to be ended.
“What is so shocking about these pictures is how natural it seems. This was not a one-case accident, it seems structural.
“This needs a treaty violation procedure by the European Commission.”
The Cyprus Papers
While it admitted mistakes in recent years, it said tightening laws and checking applicants’ backgrounds were sufficient to stopping criminals getting passports.
However, in an internal audit released late September, the country’s audit office found several weaknesses in the scheme.
At least 23 applications had been fast-tracked by the minister of interior, while problematic individuals could apply for a passport with ease through their family members’ citizenship applications.
Parliament speaker quits
Demetris Syllouris, the Cypriot parliament speaker, has announced he will resign after he was implicated in a scheme that sold passports to criminals through the country’s citizenship through investment programme.
Syllouris was filmed as part of Al Jazeera’s The Cyprus Papers Undercover, an investigation which revealed how criminals were able to obtain Cypriot passports, granting them access to the European Union and its internal markets.
“I note that my continued presence in the position of Head of Parliament has been misunderstood,” Syllouris said in a statement.
“This misunderstanding, and the evident desire by some to take advantage of the whole issue for their own political aims and plans, as well as the pretexts concerning a malfunctioning of the Law making body, have led me to the decision to submit my resignation both from the position of Head of Parliament as well as of member of the parliament,” he continued, adding that he maintained the belief that he had done nothing wrong.
His resignation follows Christakis Giovanis, also known in Cyprus as Giovani, who quit on Tuesday, hours after Cyprus announced it would abolish its controversial scheme.
Our reporter had been pretending to represent that fictitious businessman.
However, under Cypriot law, anyone who is convicted of a crime would be disqualified from obtaining a passport.
Syllouris and Giovani said they would do everything in their power to help, with Syllouris telling our reporter: “You can tell him that he will have, without mentioning my name or anybody else’s, full support from Cyprus. At any level – political, economic, social, everything – ok.”
After Cyprus suspended the citizenship through investment scheme, which has provided the country $8bn since its start in 2013, the attorney general announced an investigation into the scheme.
Weeks earlier, Al Jazeera released The Cyprus Papers, a cache of almost 1,400 documents showing Cyprus had granted passports to criminals convicted in their home countries and people wanted by Interpol in the previous years.
Calls for resignation
Initially, Syllouris said he would abstain from his duties starting October 19, but eventually buckled under growing pressure from protesters, people within his own party and the opposition.
There was also pressure from outside the country, mainly from the EU, which has for years been critical of Cyprus, and other EU countries.
After Al Jazeera’s revelations on Monday, the European Commission said in a statement it had watched the revelations in disbelief.
“President [Ursula] von der Leyen was clear when saying that European values are not for sale,” the Commission said.
“The Commission has frequently raised its serious concerns about investor citizenship schemes, also directly with the Cypriot authorities. The Commission is currently looking at compliance with EU law of the Cypriot scheme in view of possible infringement proceedings.
Following Al Jazeera’s investigation, Syllouris, Giovanis, Pittadjis and Tony and Denise Kay all defended their actions, saying they had not broken the law and that they were only fishing for information to later be handed over to Cyprus’s anti-money laundering unit.
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