Cyprus watchdog cannot investigate Deloitte’s past actions — Cyprus Mail
Cyprus’s audit oversight body stated that it has no authority to investigate events that occurred before its establishment in 2017. At the same time, the agency is gathering and assessing information about Deloitte Cyprus’s role in a case involving Roman Abramovich’s assets, Cyprus Mail reports.
The case drew attention following an investigation by BBC Panorama and the Organized Crime and Corruption Reporting Project, published on October 12. It alleged that Deloitte Cyprus approved the backdating of documents for Abramovich’s companies. Deloitte Cyprus said it acts in accordance with applicable legislation. Abramovich himself stressed that he had received independent tax and legal advice and acted in accordance with it, while his lawyers denied his involvement in alleged tax evasion.
Limits of the regulator’s powers
The head of the oversight body, Andreas Zachariades, who is also the permanent secretary of Cyprus’s finance ministry, told a parliamentary committee that the agency had contacted Deloitte and received its explanations. According to him, the case concerns the period from 2003 to 2006, making it difficult to obtain information. The company promised to provide the regulator with new information if it emerges.
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The body’s chief executive officer, Panos Prodromitis, explained that regarding conduct after 2017, the regulator’s board will assess the materials and may appoint an independent investigator if it considers a violation likely. The disciplinary committee reviews the investigator’s findings and may issue a reprimand, impose a fine, or apply a sanction in the form of removing the audit firm. If a crime is suspected, the materials may be referred to the attorney general, who decides on prosecution.
Police and bank investigations
Cyprus police informed the parliamentary committee that they had launched an investigation into the management of Abramovich’s assets through Cypriot companies. Police spokesperson Andreas Anastasiades said it would be conducted together with other competent authorities and is expected to last about six months. Police also noted that the age of the events does not eliminate the legal grounds for an investigation.
The Central Bank of Cyprus is checking the possible involvement of Cypriot banks but has not yet identified any financial institution connected to the case. The anti-money laundering unit Mokas said it had received no reports concerning this case. A representative of the Institute of Certified Public Accountants of Cyprus added that the licence of the person mentioned in the BBC investigation was revoked in 2023.
