Serious obstacles to investigating revelations about Cyprus’s alleged role in moving billions of dollars in assets on behalf of Russian oligarch Roman Abramovich emerged at Wednesday’s session of the House Institutions Committee. The authorities cited time limits and institutional constraints, raising questions over whether responsibility can be established for events dating back to 2003.
The BBC and OCCRP revelations
The investigation by the BBC and the Organized Crime and Corruption Reporting Project (OCCRP) was carried out as part of the “Cyprus Confidential” project. According to that reporting, thousands of leaked documents and emails record actions allegedly aimed at transferring bank deposits, luxury yachts, aircraft and property from companies in Cyprus to companies in the British Virgin Islands, through Deloitte Cyprus.
The documents are believed to have been leaked from MeritServus, a Cypriot corporate services provider. At the time, MeritServus belonged to Deloitte Cyprus and worked with executives of Millhouse, Mr Abramovich’s asset management company.
Police begin gathering evidence
Andreas Anastasiades, assistant director of the Police Crime Combating Department, told MPs that the police had begun collecting evidence on the case on their own initiative. He said the process could take up to six months, after which the relevant authorities would be consulted to assess the material.
During the session, however, strong doubts were expressed over whether offences can be established for events dating back two decades. Mr Anastasiades himself questioned whether a criminal offence could be established 20 years after it was committed.
Asked by AKEL MP Christos Christofides whether the police had received instructions from the Law Office following the media revelations, Mr Anastasiades replied that they had not.
Tax audit no longer possible
A representative of the Tax Department said that the examination of tax cases is subject to time limits.
According to information obtained by Politis, in cases of fraud or wilful default linked to tax evasion, the law extends the audit period to 12 years. Because the events in question date back to 2003, the Tax Department believes it can no longer carry out a tax audit in this case.
Limited powers for the audit oversight body
The Cyprus Public Audit Oversight Board also appears to face limits on its ability to intervene. Its chairman, Andreas Zachariades, who is also director-general of the Ministry of Finance, said the Board had contacted Deloitte Cyprus after the reports to request information.
“We are in contact with the company and we will see how to act accordingly,” he said, clarifying that the Board has no criminal powers.
Mr Zachariades also expressed doubts over whether even disciplinary sanctions can be imposed. He told MPs that, according to a legal opinion obtained by the Board in another case, it cannot investigate events that took place before its establishment in 2017.
Licence revoked and UK sanctions
A representative of the Institute of Certified Public Accountants of Cyprus (ICPAC) informed the Committee that the licence of the company allegedly involved in the case was revoked by the Institute in 2023. Although she did not name the company, it is reportedly MeritServus.
That same year, both the company and Dimitris Ioannides, former chairman of Deloitte Cyprus and head of MeritServus, were placed under UK sanctions. The UK government accused him of creating opaque offshore structures which, according to the British authorities, Mr Abramovich used to conceal assets worth almost $1 billion.
When OCCRP journalists contacted Mr Ioannides for comment on the allegations against him, he declined to respondthrough his lawyers.
Cyprus Bar Association
A representative of the Cyprus Bar Association said the Cypriot companies named in the reports had been checked. She told MPs that, beyond the registration of the companies in Cyprus, no law firm had provided services to them.
Deloitte Cyprus response
The current leadership of Deloitte Cyprus, which has no connection to the events of around 20 years ago, said when asked to comment that it acts in accordance with the law in force. It declined to comment further, noting that it no longer has access to correspondence from that period.
Committee chairman’s statement
Speaking after the session, Committee chairman and DISY MP Demetris Demetriou said the House had responded to the reports, including those by the BBC, concerning cases of possible tax evasion and possible money laundering.
“Without embellishing the situation, we learned the hard way,” he said. He added that the reports had not been downplayed or underestimated, that the police had launched an investigation on their own initiative, and that the professional self-regulatory bodies involved had immediately begun their own inquiries.
He noted that this would not happen overnight and concerned possible offences committed 20 to 23 years ago, which must be examined under the legal framework in force at the time.
“What matters is how we operate today and how we protect our country today,” he said. He stressed the need to ensure that such matters from the past are not repeated.
