Cyprus Reacts Swiftly To Bin Laden Allegations

by Lorys Charalambous, Tax-News.com, Cyprus

21 September 2001

The government of Cyprus has responded swiftly and angrily to allegations made by the former head of the CIA, James Woosley, that Cyprus was used by the Saudi dissident Ossama Bin Laden to launder funds later used for terrorist activities.

Earlier this week, Mr Woosley launched an attack on the offshore jurisdiction which can only be described as vitriolic, advising the EU member countries to tell Cyprus: 'You will enter the European Union, but not before 3-4,000 years have elapsed, unless you immediately provide full information about Bin Laden's money.' Mr Woosley went on to add that although there were other countries which he saw as being reluctant to cooperate in the American effort to discover the whereabouts of Bin Laden's assets, Cyprus was one of the worst offenders. The US embassy in Nicosia was swift to issue a statement making it clear that the views of Mr Woolsey do not represent the official views of the US government.

However, the authorities in Cyprus have responded angrily, stating their full intention to cooperate with all the countries in the fight against international terrorism. The country's Foreign Minister, Ioannis Kasoulides, called an extraordinary session on the 19th September, and asked ambassadors from the USA, UK, France, Germany, Italy, Spain, Greece, the EU, and Switzerland to request that their governments send any evidence that they have regarding the possible involvement of Cyyprus in terrorist activities to the government in order that it may be fully investigated, both internally and internationally.

The Governor of the Cyprus Central Bank, Afxentis Afxentiou, has also spoken out against the allegations, saying earlier this week: 'I'm sure that Bin Laden does not have any money in Cyprus. Two years ago when we investigated the matter, we did not find any accounts in the name of Osama Bin Laden, but a number of offshore companies owned by his brother.' However, he admitted that he could not confirm whether offshore companies operating in the country now were being indirectly controlled by the Saudi millionaire. He added that the Central Bank, in parallel with the government's efforts, would be asking the US embassy for further clarification.

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