Cyprus sees Russian bank deposits plunge as it seeks to clean up its financial image

abcnews.go.com:

Official figures obtained by The Associated Press show that Cyprus has made headway in weaning itself off Russian cash and business as it tries to clean up its image

NICOSIA, Cyprus — Cyprus has made headway in weaning itself off Russian cash and business as it tries to clean up its image, according to official figures, while a visiting team of U.S. officials is helping the government look at cases of alleged violations of sanctions against Russia.

According to figures obtained by The Associated Press on Wednesday, Russian deposits held in Cypriot banks fell 76% from 2014 to 2022, while Ukrainian deposits shrank by 67%. The number of Russian clients using Cypriot banks dropped 82% in the same period, while Ukrainian clients fell by 54%.

For years, Cyprus was known as an ask-few-questions jurisdiction whose banks welcomed money from wealthy depositors, despite their shady connections. It was especially popular with Russia's wealthy oligarchs.

But that began to change following a 2013 financial crisis that brought the country to the brink of bankruptcy. Cypriot President Nikos Christodoulides, who took office in March last year, is vowing to enforce sanctions related to Russia's ongoing war in Ukraine. He says the country is committed to “being on the right side of history,” condemning Russia’s ongoing war in Ukraine.

According to the same figures, Cypriot banks severed business ties with nearly 60,000 customers — mostly Russian and Ukrainian nationals — between 2014 and 2022, while some 126,000 accounts have been suspended, amounting to approximately 40 billion euros ($43.5 billion).

Local media recently reported that several large Russian-owned companies registered in Cyprus have transferred their headquarters abroad