Russian-owned Cyprus Development Bank fined for violating anti-money laundering regulations

On May 21, 2018, the Cyprus Development Bank was fined €715,000 by Cypriot regulators for anti-money laundering violations that occurred between 2014 and 2016. In summer 2014, Russian investors gained majority ownership of the bank and gained seats on its board. Two of those investors, Alexey Kulikov and Andrey Gorbatov, allegedly helped orchestrate one of the largest money laundering operations in history, the infamous “mirror trading” scheme that moved $10 billion from Russia to Europe through offsetting securities trades booked at Deutsche Bank’s Moscow and London offices. Kulikov was sentenced in 2017 to nine years in prison. Kulikov and Gorbatov have also seen the licenses of their numerous Russian banks and broker-dealers revoked by Russian regulators.

About This Incident

Threat Actors: Russia

Incident Metadata

Date: May 21, 2018`
Country: Cyprus