The Cyprus Securities and Exchange Commission (CySEC) issued a statement in response to allegations by the Mayor of Paphos about links between foreign exchange companies in Cyprus and Latin American drug cartels, indicating it is collecting available data and information from relevant bodies before deciding whether further investigation is required. CySEC reiterated that, while the foreign exchange market is decentralised and lacks a single global oversight body, its remit is to supervise domestic forex trading Cyprus investment firms (CIFs) to ensure strict compliance with the EU Markets in Financial Instruments Directive (MiFID II) and the latest EU anti-money laundering directives and regulations, with severe penalties and enforcement action for non-compliance. It also highlighted information exchange and cooperation with domestic, European and international bodies including the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA), the Anti-Money Laundering Authority (AMLA), MoneyVal, the Financial Action Task Force (FATF) and other national competent authorities. Further steps will depend on the outcome of the information-gathering process and CySEC’s determination of whether a formal investigation into the claims is warranted.
Cyprus Securities and Exchange Commission 2025-06-02
Cyprus Securities and Exchange Commission gathers information to assess allegations linking Cyprus investment firms to Latin American drug cartels
CySEC is assessing allegations linking Cyprus-based forex companies to Latin American drug cartels, gathering data before deciding on further investigation. CySEC emphasized its supervisory role under EU regulations, enforcing compliance through penalties. It noted cooperation with European and international bodies, including ESMA, EBA, AMLA, and FATF.