Kenneth Rijock

Kenneth Rijock

Monday, December 17, 2012

PRESIDENT OF CYPRUS DECLARES HIS COUNTRY 'STABBED IN THE BACK' OVER MONEY LAUNDERING ALLEGATIONS


The President of Cyprus, in announcing that the European Union has put off, until January at the earliest, any plans to commit to a financial bailout for his country, complained that that the reasons for the delay were unproven allegations of money laundering in Cyprus.  A major German magazine, with widespread circulation in Europe, recently reported that a German law enforcement agency stated that there was €20bn of Russian money on deposit in Cyprus.


If true, it would probably be the first time that the EU has apparently based a major decision, with respect to a member nation, on unofficial grounds that rampant money laundering is ignored, and government gatekeepers are ineffective at best. The maintenance of a money laundering-friendly environment is incompatible with EU membership, in my humble opinion. Perhaps the Russian clients banking there might wish to loan a few billion to the Republic of Cyprus, to balance its budget.




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