Cyprus

People

The criminal markets for human trafficking and human smuggling in Cyprus are considerable. This can be attributed largely to the country's geographical location as it sits at a crossroads between Africa, Asia and Europe, at a global hotspot for irregular migration and trafficking. Cyprus is mainly a destination country for human trafficking, with sexual and labour exploitation being the two main purposes. The majority of sexually motivated exploitation is seasonal, taking place during the high tourist season between April and October. Migrant workers are often exploited and subjected to labour trafficking in the agriculture and construction industries. Victims subjected to labour trafficking are typically recruited by employment agencies on short-term work permits, but once the latter expire, victims are threatened, their pay and documents withheld and they experience debt-based coercion. Victims of human trafficking tend to come from a wide variety of Eastern European, South-east Asian, West African, East African and Central Asian & Caucasian countries. The response to human trafficking in Cyprus varies considerably between the two Cypriot entities, with the Turkish Republic of Northern Cyprus (TRNC) essentially providing traffickers with impunity.

For a number of years, Cyprus has been among the top recipients of asylum seekers in the European Union. It is primarily a transit country for irregular migrants, but reports indicate that it is becoming a destination country as well. The 2015 migrant and refugee crisis, combined with the country's close proximity to Turkey, has led to considerable growth in its human-smuggling market. The tolerance and practices of the Turkish authorities have enabled human smugglers to use Cyprus as a beachhead into Europe. The demilitarized and difficult-to-monitor UN buffer zone stretches for 180 kilometres, providing additional opportunities for smugglers. Reports indicate that many migrants are tricked into purchasing smuggling packages they believe are for Italy, Spain or Greece, only to end up in the TRNC, where they are forced to work long hours so they can buy false documents to get into the Republic of Cyprus. In many cases, such trickery constitutes a form of human trafficking.

Trade

Gun ownership in Cyprus is relatively high, but the criminal market for small arms and light weapons appears to be minor. Evidence suggests that local criminal actors normally acquire firearms by robbing army camps or army reservists’ houses, but these sorts of incidents happen on rare occasions only.

Environment

Although there are many unanswered questions about the nature of environmental crimes in Cyprus, evidence suggests that the two predominant forms are illicit logging and the poaching of migratory birds. Illicit logging occurs within protected areas of the country and it is believed that most of this wood feeds a local demand for firewood, used primarily for heating. Within the criminal markets for fauna, the most common illicit activity is the poaching of migratory songbirds such as robins, blackcaps and thrushes. The demand comes primarily from local restaurants, where songbirds are served as part of the expensive delicacy of Ambelopoulia – a plate of cooked songbirds. Due to concerted attempts to curb poaching, there has been a significant reduction in the size of the criminal market over the years.

There is little proof of the existence of a criminal market for non-renewable resources. However, the TRNC has been linked to the smuggling of oil products (most likely extracted by the Islamic State) from Syria to Turkey, as well as to the smuggling of refined-oil products from Libya to European markets.

Drugs

Cyprus is a destination market for cannabis, cocaine and synthetic drugs, but there is little indication that it is a trans-shipment point for drug-trafficking flows. Cannabis is the most the prevalent illicit drug in Cyprus, entering the country mostly via other European countries. While Cyprus is primarily a destination country, there are reports of small-scale local cultivation to supplement imported cannabis. There is little evidence to confirm or deny the involvement of specific organized-crime groups in the cannabis market. Cocaine is the second most consumed drug in Cyprus and one of its most valuable criminal markets. It enters the country primarily via passenger flights or airfreight, after first entering Europe via Belgium and the Netherlands. Mafia-style groups are known to control the criminal market for cocaine.

There is not a big market for synthetic drugs in Cyprus. An increase in the use of amphetamines, methamphetamines and MDMA has been observed in recent years, but this growth has come off a very low base. During the tourist seasons, the demand for synthetic drugs is believed to increase substantially. These drugs are smuggled into the country mostly via air, with the majority originating in the Netherlands. There is a lack of information regarding specific organized-crime groups operating within the synthetic-drug market, but reports suggest that there are a large number of independent, low-level dealers. The heroin market in Cyprus is the smallest of the drug markets. Domestic demand is low, with only a handful of seizures in recent years.

Cyber Crimes

*This indicator was first included in the 2023 iteration of the tool

Financial Crimes

*This indicator was first included in the 2023 iteration of the tool

Criminal Actors

Russian groups appear prominent in the country; they are believed to be the best connected and to exert the most financial and economic power in Cyprus. British, Eastern European and Asian organized-crime groups also have a presence in Cyprus, while Turkish groups have established a significant foothold in the TRNC. In the human-trafficking and smuggling markets, in particular, there is a high level of collaboration between individuals in Cyprus and foreign criminal actors in countries such as Moldova, Russia, Uzbekistan and Romania, but foreign actors in the country are also involved in property crimes as well as poaching, among others. The state does not seem to exert significant control over any criminal market. However, organized criminals have been able to bribe border officers and other low-level government officials. More-prominent officials have allegedly been involved in money laundering.

Criminal networks are highly influential, having a stake in drug trafficking in the country, as well as in illegal gambling and trafficking of women. Approximately 15 mafia-style groups allegedly operate across Cyprus, in Nicosia, Famagusta, Paphos and Limassol. Famagusta port more specifically is a hub for arms and goods smuggling. Though the majority cannot be explicitly named, they have a relatively clear leadership structure.

Leadership and governance

In recent years, the government of the Republic of Cyprus has renewed its commitment to combating organized crime, illustrated by its strengthened intelligence capacities and the establishment of a new law-enforcement agency to fight organized crime and terrorism. Corruption in Cyprus remains a substantial problem, with the country suffering from one of the highest levels of corruption in the EU. The institutional framework for fighting corruption is mostly adequate. However, it contains a number of significant gaps and suffers from low levels of trust, which critics say are due to the prevalence of politically motivated appointments and decisions.

Cyprus has ratified all relevant international organized-crime conventions, including the UN Convention against Transnational Organized Crime (UNTOC), the UNTOC protocols and the UN Convention against Corruption. Cyprus has several bilateral treaties with regional countries focused on cooperation in the countering of organized crime, terrorism, and the illicit use and trafficking of drugs. It has also signed and ratified bilateral agreements on judicial cooperation in civil and criminal matters, and is considered very active in global-policing efforts. Cyprus engages in cooperation on extradition, but has, on a number of occasions, failed to extradite criminals, which has had serious consequences. Cyprus’s legal framework covers various aspects of organized crime, including legislation on illicit drugs, illegal fishing, human trafficking, cybercrime and money laundering.

Criminal justice and security

Cyprus’s judiciary is independent and generally upholds due process in criminal matters. Nevertheless, a moderate risk of corruption exists in the judicial system, related in particular to the payment of bribes and irregular payments for the purpose of receiving favourable judgments. The judiciary suffers from a lack of staff and resources, which has led to poor enforcement, as well as significant delays and backlogs. Reports suggest prison overcrowding and conditions in detention facilities are a concern. There have also been allegations of criminal organizations wielding influence in prisons. With persistent allegations of police ill-treatment and lack of capacity of police to counter organized crime, law enforcement is a sector that needs improvement. Certain strides have been made, however, evident in the formation of an agency responsible for fighting organized crime and terrorism.

Cyprus’s territorial integrity is violated regularly by transnational smugglers and traffickers. The dispute over the northern half of Cyprus and hostile, often aggressive Turkish foreign policy is a source of fragility. As an island state, the Cyprus port and marine police play an important role in policing the country’s territorial waters, but they regularly face accusations of abuse and disproportionate actions, particularly against boats carrying asylum seekers and other migrants.

Economic and financial environment

Cyprus has an open economy that is heavily reliant on trade in services, particularly in the financial and tourism sectors. Overall, Cyprus's economic regulatory environment is conducive to doing business. However, there are still concerns over the country's relatively high unemployment rate and the fact that it is heavily reliant on external investment. Procurement processes are vulnerable to corrupt practices, and organized crime is reportedly deeply entrenched within legitimate businesses. This is especially true in the nightlife sector, where large investments have been made, making it possible for considerable quantities of laundered money to flow out of these legal entities.

With its large, highly secretive offshore financial industry, Cyprus is a well-known hub for money laundering. Following the economic collapse that occurred in 2013, a stricter framework against money laundering was adopted, but a number of risks and vulnerabilities remain. These are for the most part related to international business – notably real-estate deals and banking. Recent years have seen some major money-laundering scandals on the island, including one that implicated a company co-owned by President Nicos Anastasiades; a claim that was later dismissed by the state's anti-money laundering unit. Nevertheless, Cyprus has worked hard to align its banking regulations with EU directives, as well as to implement the Organization for Economic Cooperation and Development’s common standard on reporting. While major issues remain, this has strengthened Cyprus’ Anti-Money Laundering and Countering the Financing of Terrorism framework.

Civil society and social protection

Cyprus has established a fairly robust system for assisting the victims and witnesses of organized crime, who are entitled to protection under the official witness-protection programme. The government has installed various mechanisms to protect the victims of human trafficking, including a system for identifying and helping them to access relevant social, health and psychosocial services. However, these measures are sometimes criticized by civil society for being slow and for lacking transparency in the identification process. With regard to support for drug users, a number of harm-reduction programmes have been put in place, including opioid-substitution treatment, which is also available in prisons.

The Constitution of the Republic of Cyprus guarantees freedom of speech and freedom of the press, and authorities generally respects these freedoms. While journalists can engage in critical reporting, some of those who have covered controversial topics such as corruption and organized crime have faced threats and censorship.