The Cyprus CIP Scandal: Revoked Citizenships and Systemic Failures Revealed

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Published Date: 27.11.2024

The Cyprus CIP has once again made headlines for all the wrong reasons. A recent exposé by Politis revealed the names of 77 Citizenship by Investment Program (CIP) participants whose citizenships were revoked. This scandal highlights systemic flaws and raises serious concerns about transparency in the program.

Revoked Cyprus Citizenships: A Growing List of High-Profile Cases

The recent publication by Politis adds 77 names to the list of those who lost their Cypriot citizenship. Among them is Sergey Lomakin, the owner of Paphos FC, who is accused of violating program conditions. These revocations bring the total number of citizenship cancellations to 286, with more cases expected to follow.

Interior Minister Konstantinos Ioannou previously refused to disclose these names, citing ongoing investigations and data protection laws. The Ministry confirmed 86 revocations between September 2013 and August 2024 but maintained that releasing names could jeopardize police efforts. Despite this stance, the revealed list includes prominent figures like Malaysian financier Jho Low and Russian investor Roman Kazimierz Ziemian.

Ziemian’s case is particularly striking. He changed his surname to Hortman after gaining Cypriot citizenship in 2019 and was recently arrested in Montenegro. Moreover, he faces charges linked to a $21 million cryptocurrency fraud, raising questions about the program’s vetting process.

Key Issues with the Cyprus CIP

The Cyprus CIP has faced several challenges due to poor management and systemic failures. Key issues include:

  • Non-compliance with property requirements: Many investors failed to provide progress certificates or sold properties prematurely.
  • Weak screening protocols: Authorities failed to assess high-risk applicants effectively, leading to fraudulent approvals.
  • Conflicts of interest: Government probes uncovered influence peddling and favoritism among program administrators.

These issues have led to a loss of trust and significant reputational damage for Cyprus.

Who Lost The Cyprus Citizenship?

The Politis list includes various categories of individuals:

  • Naturalized investors: High-profile figures like Jho Low and Sergey Lomakin.
  • Family members: Spouses and dependents included in the applications.
  • Service providers: Professionals who processed the applications and facilitated non-compliance.

These individuals were found to have violated program conditions or faced serious legal issues in their home countries.

Legal Ramifications and the Path Forward

Under current legislation, 20 more investors await potential citizenship revocation, pending criminal proceedings in their home countries. These cases involve serious allegations, including corruption, tax evasion, and money laundering.

Furthermore, investors can appeal revocations through the Committee for Examination of Citizenship Deprivation. If unsuccessful, they may challenge decisions in court, where favorable rulings could restore their citizenship. However, with ongoing investigations and upcoming trials, further revelations seem inevitable.

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Conclusion

The Cyprus CIP, once a key economic driver, now faces unprecedented scrutiny due to mismanagement and lack of transparency. The program’s systemic failures have not only tarnished Cyprus’s reputation but also raised global concerns about the ethics of citizenship by investment programs. To conclude, as investigations continue, the path forward must include stricter regulations and greater accountability to rebuild trust.

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