Cyprus Traces Two Accounts Linked To Milosevic's Alleged Money Laundering Activities

by Lorys Charambolous, Tax-news.com, Cyprus

11 April 2001

Whilst ex-Yugoslav president Slobodan Milosevic waits to hear what punishment will be meted out to him over the atrocities in the Balkans, Yugoslav authorities have been looking into the shady side of his business affairs. Mladjan Dinkic, the Yugoslav central bank governor, visited Cyprus recently in pursuit of $4bn or more which he says was stolen by ex-President Milosevic and his family and associates. It's not only Cyprus that is under scrutiny - Greece, Israel and Switzerland are on the list too - but Cyprus is being very open over the matter and has consistently denied any major involvement in money laundering.

Reporting on progress made in the investigation, Cyprus said earlier this week that it had traced two instances where Yugoslav state assets had found their way into the island's banking system. These two suspect accounts have been investigated by the Cypriot government's anti-money laundering unit, and information passed to the Yugoslav authorities. Government spokesman Michalis Papapetrou said: 'We have sent all the relevant information and documents on these two cases to Yugoslavia so they can incorporate it into their own inquiries. These were two accounts given to us by the Yugoslav authorities ... they were here and they are not anymore.'

Cyprus still has a number of accounts to investigate, having been given the names last month of several Cyprus-based offshore companies linked in some way to Milosevic or his relatives, but the government has again denied any complicity on its part. Papapetrou stated: 'Cyprus is fully responding to what was asked of it. We believe that it is to our credit that we are cooperating and divulging full data on these issues........We cannot pre-empt the outcome of investigations here and in Yugoslavia but the fact these funds were received in Cyprus means nothing.'

The Cypriot authorities are also having to contend with local television reports, which last week alleged that an organisation controlled by America's most wanted terrorist, Saudi Osama Bin Laden kept bank accounts in Cyprus. Cyprus is denying any such allegations. Foreign Minister Ioannis Cassoulides and Attorney-General Alecos Markides both said this week that they knew nothing at all about Bin Laden money having found its way into Cyprus.

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